Markets mixed as traders prepare for Powell speech

HONG KONG, China — Equities were mixed Monday following last week's strong performance, with traders focused on a closely followed meeting of central bank chiefs where the Federal Reserve's Jerome Powell is due to deliver a key speech.

Investors appear to have gotten over the turmoil that beset trading floors this month as a string of data suggested that worries of a US recession had been overdone.

Powell's talk at the annual Jackson Hole symposium in Wyoming -- which also gathers together financial leaders and policymakers -- will be pored over, with hopes that he will flag an interest rate cut when Fed officials meet next month.

"Investors and analysts alike will be paying close attention to any signals from Fed officials about the future direction of US interest rates," said Luca Santos, currency analyst at ACY Securities.

"There's growing speculation that... Powell might hint at the possibility of starting rate cuts as early as September. But the size of the cut is still up in the air.

"A modest 25 basis points reduction seems likely, but a larger 50-basis-point cut would need stronger evidence of a weakening US job market."

All three main indexes on Wall Street rose Friday, leaving them back near the record highs touched before their August 5 rout as investors grow confident the US economy will avoid recession as the Fed cuts rates.

Asian and European markets wavered after a positive start to Monday.

Hong Kong, Shanghai, Singapore, Sydney, Mumbai, Taipei, Manila and Bangkok rose, although Tokyo, Seoul, Jakarta and Wellington dipped.

London, Paris and Frankfurt dipped in the morning.

Bets on a series of Fed rate cuts weighed on the dollar against most of its peers, with the yen among the big gainers as traders assess the chances of another Bank of Japan hike at its next meeting.

Gold held above $2,500 after breaking the barrier for the first time on Friday, fuelled by expectations for Fed cuts that will make the precious metal more attractive to investors.

And oil prices were barely moved after last week's losses, which came on the back of demand worries as China's economy struggles to recover.

Investors are also keeping tabs on talks to mediate a ceasefire between Israel and Hamas in Gaza amid fears of a wider war in the crude-rich Middle East.

Major oil producer Iran has threatened to retaliate against Israel for last month's killing of Hamas political leader Ismail Haniyeh in Tehran, which has been widely blamed on Israel.

US Secretary of State Antony Blinken was due to meet Prime Minister Benjamin Netanyahu and other Israeli leaders Monday to try to unblock the process for an end to hostilities.

Key figures around 0810 GMT 

Tokyo - Nikkei 225: DOWN 1.8 percent at 37,388.62 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 17,569.57 (close)

Shanghai - Composite: UP 0.5 percent at 2,893.67 (close)

London - FTSE 100: DOWN 0.2 percent at 8,296.48

Euro/dollar: UP at $1.1040 from $1.1022 on Friday

Pound/dollar: UP at $1.2960 from $1.2945

Dollar/yen: DOWN at 146.20 yen from 147.60 yen

Euro/pound: UP at 85.21 pence from 85.14 pence

West Texas Intermediate: DOWN 0.6 percent at $75.09 per barrel

Brent North Sea Crude: DOWN 0.5 percent at $79.28 per barrel

New York - Dow: UP 0.2 percent at 40,659.76 (close)