HONG KONG: Asian markets rose Friday (Aug 26) after a Wall Street rally ahead of a speech by Federal Reserve boss Jerome Powell that is expected to reiterate his plan to ramp up interest rates to fight inflation.
Adding to the strong buying sentiment were signs of progress in talks between US and Chinese regulators that could see tech titans including Alibaba and JD.com avoid a delisting in New York.
Global equities have staggered in recent weeks after a near two-month rally from their June lows as a string of Fed officials lined up to reaffirm their commitment to tighten monetary policy, despite some promising economic data.
All eyes are now on Powell’s remarks later Friday at the annual symposium of top bankers and finance chiefs at Jackson Hole, Wyoming.
Most expect him to confirm that more hikes are on the way as officials try to bring inflation down from painful highs not seen in four decades.
Analysts said that while a number of board members have lined up this week, the hawkish tilt has largely been baked into market prices.
The key issue now is how much the bank will tighten over the coming months, with expectations for a half-point lift next month, after two three-quarter moves in June and July.
Wall Street’s three main indexes ended well up Thursday, with the Nasdaq and S&P 500 up more than 1 per cent.
And Asia followed the lead, with Tokyo, Hong Kong and Sydney closing higher. There were also gains in Seoul, Singapore and Taipei.
Shanghai, however, ended lower.
In early European trade, London, Frankfurt and Paris all rose.