Asian stocks were mixed today on the stock market as investors awaited the Fed conference for an interest rate update

On Monday, Asian equities were neutral as investors awaited the Federal Reserve’s July meeting for clues on whether the US central bank believed that inflation was under control or whether more interest rate increases were required to bring it down.

Tokyo and Seoul moved forward while Shanghai and Hong Kong retreated. Oil costs increased.

The benchmark S&P 500 index on Wall Street decreased by 0.1% on Friday to close the week down in advance of the Jackson Hole, Wyoming, conference. Traders are keeping an eye on the event since Fed officials have previously used it to signal shifts in policy direction.

Investors who believe rate increases are over “may be rude hawkish surprises,” according to Tan Boon Heng of Mizuho Bank in a study. Jerome Powell, the chair, “may allude to inflation being the new norm being structurally higher (and potentially more volatile)”.

The Nikkei 225 in Tokyo increased 0.6% to 31,626.56, while the Shanghai Composite Index fell 0.3% to 3,122.67. The Hong Kong Hang Seng fell 1.1% to 17,760.29.

Seoul’s Kospi increased by 0.6% to 2,518.44, while Sydney’s S & P-ASX 200 declined by 0.2% to 7,137.10.

Bangkok, New Zealand, and Singapore advanced while Singapore declined.

The S & P 500 on Wall Street dropped to 4,369.71 on Friday. To 34,500.66, the Dow Jones Industrial Average increased by 0.1%. To 13,290.78, the Nasdaq composite decreased 0.2%.

After opponents cautioned the market adopted the idea too early that inflation was under control and rate rises were over, the S and P 500 has given up more than one-quarter of its gains from the first seven months of 2023.

Because bonds pay out more and are less hazardous with increasing interest rates, some investors are moving money to them.

Microsoft had a 0.1% decline on Friday. Tesla fell 1.7 percent, while Alphabet fell 1.9%.

Due to increasing rates, tech and other high-growth companies are seen as some of the greatest losers. Several are down more than 10% from their peaks for the year.

Data showing surprisingly robust US consumer spending and hiring have raised concerns the Fed may be under pressure to hold its key lending rate higher for longer.

Although it is now below the top of over 9% last year, inflation is still over the Fed’s objective of 2%. In July, consumer prices increased 3.2% over a year earlier, up from a 3% rise in June.

According to economists, the last phase of bringing inflation down to the Fed’s objective may prove to be the most challenging.

Ross Stores had the biggest rise in the S & P 500 on Friday, rising 5% after reporting better-than-expected financial results. Despite posting greater earnings and sales than anticipated, Estee Lauder’s stock dropped 3.3%. Its earnings projection for the next fiscal year was below Wall Street’s expectations.

On the New York Mercantile Exchange’s computerized trading platform, benchmark US crude increased by 73 cents to USD 81.39 a barrel in the energy sector. The benchmark price for global oil trade, Brent crude, increased 75 cents to USD 85.55 per barrel in London.

From 145.32 yen on Friday, the dollar marginally increased to 145.35 yen. The euro increased from 1.0878 to 1.0882 US dollars.