Markets on edge as Fed Chair Warsh set to speak at Jackson Hole

Global markets entered a cautious posture on Thursday as investors awaited Federal Reserve Chair Kevin Warsh's address at the 2026 Jackson Hole symposium, where many expect a hawkish tone on monetary policy. The annual gathering, hosted by the Federal Reserve Bank of Kansas City from August 27 to 29, comes amid persistent inflation concerns and diverging central bank actions across Asia.economictimes

Asian Markets Mixed Ahead of Speech

Equity-index futures for South Korea and Hong Kong pointed to initial declines Friday, while Japanese futures were flat, according to Bloomberg. The cautious positioning followed a strong session on Wall Street, where Nvidia ↘ 1.17% surged almost 9% — its largest single-day gain since April 2025 — after reporting quarterly revenue that more than doubled and issuing a third-quarter forecast above analyst estimates.bloomberg

The AI chipmaker's results rippled through Asian tech stocks on Thursday. South Korean equities rose 1.5% and Taiwan stocks gained 0.3%, with both benchmarks posting three-session winning streaks. SK Hynix ↗ 13.30% advanced 2.5% and Samsung Electronics climbed 1.7% as Nvidia's outlook showed no signs of slowing demand for AI chips.theedgemalaysia

Regional Central Banks Tighten Policy

The mixed sentiment reflected crosscurrents beyond Jackson Hole. The Philippines' Bangko Sentral ng Pilipinas raised its key interest rate by 25 basis points to 5.00% — a third consecutive hike — to combat inflation and support the peso. Manila equities fell 2.2%, near their lowest since June 11.theedgemalaysia

South Korea's Bank of Korea also lifted its benchmark rate to 3.00% while raising its 2026 growth forecast. The won, buoyed by strong exports and hawkish policy, has gained 4.3% against the dollar this year, outperforming regional peers.theedgemalaysia

"The hike was fully priced, so the muted market reaction makes sense. It makes me slightly more constructive on the peso, as the BSP is clearly prioritising inflation control and currency stability," said Glenn Yin, director of research at ACCM.theedgemalaysia

All Eyes on Warsh

The US dollar strengthened overnight after inflation data raised expectations for a Fed rate hike, adding weight to Warsh's remarks later Thursday. Gold rebounded above $4,600 in Asian trading as the dollar softened heading into the speech. Warsh's address is expected to set the tone for markets heading into the fall, with traders parsing every word for signals on the Fed's next move.bloomberg+2