South Korea’s Kospi led regional losses, sliding 1.04%, while MSCI’s broader Asia Pacific gauge also eased lower. Hang Seng futures dropped 0.5%, pointing to a soft start for Hong Kong shares.
Japanese equities bucked the weaker trend. The Nikkei 225 climbed 0.66% and the Topix advanced 1.04%, even as the Japanese yen held largely steady at 159.33 per dollar.
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Investors kept a close eye on Tokyo for signs of currency intervention, with the Finance Ministry due to release data later on Friday detailing how much Japan spent defending the yen over the past month.
The offshore yuan barely moved, changing hands around 6.7197 per dollar.
US futures pointed to a cautious open too, as Nasdaq 100 contracts fell 0.3% and S&P 500 futures slipped 0.2%, hinting that early optimism sparked by Nvidia Corp’s upbeat forecast began to fade.
US Federal Reserve Chair Kevin Warsh’s remarks stood at the centre of investor attention as traders sought clarity on how the Fed intended to weigh inflation against a softening economy, with the outcome likely to determine whether the recent climb in bond yields would extend further.
US Treasuries extended their decline for a second straight session on Thursday, with yields rising two to three basis points across maturities amid mounting worries over inflation and America’s fiscal trajectory.
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Fresh US data further weighed on the situation as jobless claims fell, wholesale inventories rose, and the merchandise trade deficit widened in July to its largest level since early last year, according to a Bloomberg report.
Oil prices reflected the cautious mood too. Brent crude returned to around $89 a barrel, recovering from a dip near $86 during Thursday’s session. The US West Texas Intermediate (WTI) held steady near $83.40, with diplomatic efforts over the Strait of Hormuz reportedly running into fresh obstacles.
