Global Markets Await Powell’s Speech as Asian Stocks Show Divergence

Investor anxiety grips global markets ahead of Federal Reserve Chair Jerome Powell's pivotal Jackson Hole address. U.S. equity futures edged lower, with Nasdaq contracts leading declines at 0.4% as traders brace for potential volatility. The S&P 500's recent whipsaw action underscores how inflation data continues to dictate market sentiment - July's benign CPI reading briefly fueled rate-cut hopes before being dashed by hotter PPI numbers.

Asian markets presented a fragmented picture amid the uncertainty. Japan's Nikkei eked out gains as inflation moderated slightly but remained above the Bank of Japan's comfort zone. Chinese equities outperformed, with Shanghai surging 1.5% as bargain hunters emerged. The divergence highlights how regional factors increasingly compete with Fed policy for market influence.