Markets in Asia and Europe moved in different directions on Friday, the 22nd of August, 2025, as investors waited for US Federal Reserve Chairman Jerome Powell’s closely watched speech at Jackson Hole.
His remarks are expected to provide signals on whether policymakers could consider cutting interest rates at their September meeting.
Global trading has been cautious in recent days, shaped by concerns over stubborn inflation and mixed growth prospects, even as technology stocks, driven largely by artificial intelligence, continue to show strength.
Powell enters the spotlight under added pressure, with President Donald Trump repeatedly calling for rate cuts, an unusual political intervention for the independent central bank.
In Asia, the mood was split. Tokyo’s Nikkei inched up 0.1 percent after a 0.7 percent fall the previous day. Fresh figures from Japan showed core inflation slowing to 3.1 percent in July from 3.3 percent a month earlier, still above the Bank of Japan’s two-percent target, reinforcing expectations that a rate hike may come in October.
Shanghai delivered the day’s strongest result, climbing 1.5 percent to close above 3,800 points for the first time in ten years, lifted by a surge in shares of semiconductor firm Cambricon.
Markets in Hong Kong, Seoul and Bangkok also gained ground, while Sydney and Taipei slipped.
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European stocks began the day more cautiously. London and Frankfurt edged lower, while Paris posted modest gains.
Analysts said the hesitation reflects uncertainty over Powell’s comments, Chris Weston, head of research at Pepperstone, wrote that Asia “should act as a safe harbour while the Fed’s credibility is under the spotlight.” He added that “hesitation to push risk higher will remain,” stressing there is “a very low probability” that Powell will explicitly endorse rate cuts.
Geopolitics added to the unease, Trump announced on Thursday, the 21st of August, 2025, a two-week timeframe to assess ongoing peace talks between Moscow and Kyiv, after holding direct meetings with the Russian and Ukrainian leaders as well as European counterparts.
The prospect of a deal, more than three years after Russia’s invasion, has stirred speculation about the potential lifting of sanctions on Russian oil, a scenario closely tied to global energy prices.
Oil markets extended recent gains, with prices edging up on Friday, the 22nd of August, as traders balanced diplomatic developments with broader economic uncertainty.
Tokyo’s Nikkei closed at 42,633.29, up 0.1 percent. The Hang Seng in Hong Kong finished 0.9 percent higher at 25,339.14, while the Shanghai Composite climbed 1.5 percent to 3,825.76. London’s FTSE 100 slipped 0.1 percent to 9,300.77, and New York’s Dow ended down 0.3 percent at 44,785.50. On currencies, the euro weakened to $1.1592 from $1.1604, the pound dipped to $1.3410 from $1.3412, while the dollar strengthened to 148.60 yen from 148.37 yen. The euro eased to 86.45 pence from 86.52 pence. Oil prices rose slightly, with West Texas Intermediate at $63.66 a barrel and Brent North Sea crude at $67.78.