Asian stock futures point to a downward trend, mirroring Wall Street's recent dip as investors anxiously await a crucial US inflation report. The upcoming data could significantly influence the Federal Reserve's decisions on interest rate cuts.

Market Movements

• Japan, Hong Kong, and Australia stock futures show declines
• Chinese contracts buck the trend, marking gains for the fourth consecutive session
• S&P 500 dropped despite positive movements from tech giants:
  • Nvidia climbed ahead of its earnings report
  • Alphabet reached a record high

US Market Indicators

• 10-year Treasury yield rose to 4.28%
• US dollar strengthened
• Money markets pricing in:
  • 80% probability of a September Fed rate cut
  • Expectations of two total reductions by year-end

Inflation Expectations

The Fed's preferred inflation gauge, the core PCE (Personal Consumption Expenditures) index, is anticipated to show an annual rise of 2.9%, marking the fastest pace in five months. This data will be closely watched for its potential impact on Fed policy.

Asian Market Highlights

• China's CSI 300 Index:
  • Posted its best week since November
  • Climbed 2.1%
  • Technology and property sectors led the gains

International Trade and Business Developments

• Trump confirmed the 15% tariff deal with South Korea remains unchanged
• Korean Air placed a significant order with Boeing:
  • Over 100 jets ordered
  • Deal valued at $13.70 billion, involving GE Aerospace

Tech Sector Focus

Nvidia's upcoming earnings report on Wednesday is set to be a critical test for the AI-driven market momentum that has been a significant factor in recent market trends.

As global markets navigate through these economic indicators and corporate developments, investors remain cautious, balancing optimism in certain sectors against broader economic concerns.

Asian stock markets struggled to find direction on Tuesday, following a flat close for the S&P 500 in the previous session. The mixed performance comes as investors digest recent geopolitical developments and anticipate key economic events later in the week.

Oil Markets Stabilize After Trump-Ukraine Meeting

Oil prices held steady near $63.00 per barrel, maintaining Monday's 1% gain. The stability in crude oil prices follows a meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. Trump announced plans to arrange a meeting between Russian President Vladimir Putin and Zelenskiy, proposing a one-on-one summit followed by a trilateral gathering. This diplomatic effort could have implications for global oil markets, which have seen prices decline by more than 10% this year due to trade policy concerns and oversupply outlook.

Global Market Indicators

While Asian stocks showed mixed performance, other global market indicators provided clearer signals:

• The 10-year Treasury yields rose by two basis points
• The dollar index added 0.2%

Corporate Developments

Notable corporate news included:

• Intel shares declined following reports that the Trump administration may take a 10% stake in the company
• SoftBank announced a $2.00 billion investment in Intel common stock

Federal Reserve's Jackson Hole Symposium

Investors are turning their attention to the Federal Reserve's Jackson Hole Economic Policy Symposium, which begins on Thursday. Fed Chair Jerome Powell is expected to unveil the central bank's new policy framework on Friday, potentially providing hints about September rate decisions.

Current market sentiment, as reflected in interest-rate swaps, shows:

As global economic uncertainties persist, market participants will be closely monitoring the symposium for insights into future monetary policy directions and their potential impact on various asset classes.