According to Bloomberg, Asian stocks are poised for a cautious start on Monday as investors await significant central bank decisions in the region this week and the annual Jackson Hole symposium. Equity futures in Australia and Japan showed declines, while those for China and Hong Kong indicated gains. Meanwhile, US contracts remained steady in early Asian trading after the S&P 500 saw a 0.2% increase on Friday. The dollar showed little movement.
The subdued beginning to the week comes as market participants anticipate US jobless claims and economic activity data. Jerome Powell's upcoming statements are expected to be closely monitored by financial markets, with strategists from the Commonwealth Bank of Australia emphasizing the sensitivity to his words. In Asia, attention will be focused on central bank meetings in Indonesia and South Korea for potential policy easing signals. Thailand's central bank decision is also on the radar, while China is anticipated to maintain its 1- and 5-year loan prime rates following the People's Bank of China's recent actions.
Geopolitical developments are also likely to influence market sentiment. Traders will be looking for more details on Kamala Harris's economic plan as she is confirmed as the Democratic Party's nominee at its convention this week. Additionally, developments in the Middle East will be closely watched amid efforts to achieve a hostage deal and ceasefire.
Market behaviour during this relatively quiet week for data, filled with central bank decisions and guidance, will be crucial in setting the tone for a potentially more active end of the month. This story was produced with the assistance of Bloomberg Automation.