**Asian Markets Show Mixed Performance Amid Economic Signals**
Asian stock indexes displayed varied trends on Tuesday after the People's Bank of China decided to maintain its benchmark loan prime rate, a decision that follows an unexpected rate cut in July.
Investors are analyzing the minutes from the Reserve Bank of Australia's August meeting while anticipating the release of the Federal Open Market Committee (FOMC) meeting minutes and Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, hoping to gather insights on the future course of interest-rate adjustments.
The U.S. dollar remained near a seven-month low, and Treasury yields declined, bolstered by expectations that the Federal Reserve may soon indicate its intention to lower interest rates. With recession concerns decreasing, the U.S. central bank is widely anticipated to implement 25 basis point rate cuts in each of its three remaining meetings in 2024.
In commodity markets, gold maintained its position above $2,500 per ounce during Asian trading sessions. Conversely, oil prices extended their losses, having decreased by about 2% on Monday due to ongoing concerns about Chinese demand, and news of Israel accepting a proposal to resolve disagreements hindering a ceasefire agreement in Gaza.
In Asia, China's Shanghai Composite Index fell 0.7% to 2,873.55, while Hong Kong's Hang Seng Index decreased by 0.4%.
Japan's Nikkei, however, surged by 1.6%, despite the yen reaching a high against the dollar not seen in over a week.
South Korea's Kospi Index rose by 0.87% to 2,697.54, driven by advances in technology stocks, with Samsung Electronics gaining 1.5% and SK Hynix increasing by 3.4%.
Australian markets experienced modest gains following the Reserve Bank of Australia's minutes, which revealed that an earlier interest rate hike had been considered in August. The S&P/ASX 200 and the broader All Ordinaries Index both rose by approximately 0.2%.
In New Zealand, the S&P/NZX 50 Index decreased by 0.8% to 12,559.
In the United States, stock markets gained overnight, driven by a broad-based rally as economic concerns lessened and Federal Reserve officials hinted at an imminent start to an interest-rate cutting cycle. Despite a significant drop in leading economic indicators for July, which fell more than expected, a recession was not signaled.
The Nasdaq Composite, heavily weighted in technology stocks, surged by 1.4%, while the S&P 500 increased by 1%, marking its eighth consecutive session of gains. The Dow Jones Industrial Average rose by 0.6%.
In Europe, stock markets continued their upward trend for the fifth consecutive day on Monday, as investors eagerly awaited more data on the U.S. economy. The pan-European STOXX 600 gained 0.6%, the German DAX increased by 0.5%, France's CAC 40 climbed by 0.7%, and the U.K.'s FTSE 100 advanced by 0.6%.
