HONG KONG (AP) – Asian stocks were mixed Monday as investors kept a wary eye on joint military drills between U.S. and South Korean forces and awaited a key meeting of central bankers later this week.
KEEPING SCORE: Japan’s benchmark Nikkei 225 index lost 0.4 percent to 19,399.01 and South Korea’s Kospi dipped 0.1 percent to 2,355.11. Hong Kong’s Hang Seng rose 0.5 percent to 27,189.02 and the Shanghai Composite Index added 0.3 percent to 3,277.54. Australia’s S&P/ASX 200 shed 0.6 percent to 5,710.80. Taiwan’s benchmark crept higher and indexes in Southeast Asia were mixed.
MOUNTAIN MEETING: Central bank officials from around the world will be gathering for an annual three-day conference at a mountain resort in Jackson Hole, Wyoming, starting Thursday. Investors will be scrutinizing remarks from the policymakers due to speak, including Fed chief Janet Yellen and European Central Bank head Mario Draghi, for any hints on the future direction of interest rates and economic stimulus programs, which will have implications for global stock markets.
MARKET VIEW: “All eyes turn to Wyoming this week, where central bank heads and academics come together to swap ideas, and this time, in all probability, to ask, ‘Where on earth is the inflation we all expected, and what do we do with rates?'” said ING Economist Rob Carnell.
WAR GAMES: U.S. and South Korean forces are starting annual joint military exercises that could further rile North Korea. The war games have the potential to stoke geopolitical tensions and market jitters more than usual, given recent threats by both President Donald Trump and North Korea.