Asian equity markets in Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Jakarta, and Taipei advanced on August 28 as investors positioned themselves ahead of Federal Reserve Chair Kevin Warsh’s keynote address at the Jackson Hole symposium. US inflation has now exceeded the Fed’s 2% target for 65 consecutive months, with three Federal Open Market Committee members dissenting at the July meeting to push for a rate hike. Nvidia’s extraordinary second quarter results, with revenue of $96.2 billion representing a 106% year-over-year jump, failed to sustain market enthusiasm as focus shifted back to monetary policy uncertainty. A Fed rate increase would ripple through currency markets, sovereign debt pricing, and emerging market capital flows, while Middle East instability continues to exert pressure on energy prices and inflation readings.
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