Asian Stock Market: Trades lower ahead of Fed’s Powell speech, Nikkei leads losses

• Asian stock markets open on a weak note on Friday ahead of the key event.
• Chinese central bank looks to target outflows and limit the amount of Yuan offshore.
• Japan’s Nikkei leads losses by almost 2%, dragged by tech stocks.
• Indonesian central bank decided to maintain its interest rate at 5.75%.
• Market players will keep an eye on the Fed’s Powell speech.

Asian stock markets trade in negative territory on Friday. Markets turn cautious ahead of the Federal Reserve (Fed) Chairman Jerome Powell's speech. Additionally, the primary forces propelling the Asian market are a stronger dollar and lingering fears about global growth in China.
At press time, China’s Shanghai is down 0.4% to 3,070, the Shenzhen Component Index dips 0.94% to 10,160, Hong Kong’s Hang Sang falls 0.86% to 18,057, South Korea’s Kospi is down 0.66%, Japan’s Nikkei dips 1.92% and Taiwan's Weighted Index slumps 1.23%

China's real estate sector, which accounts for almost a quarter of the world's second-largest economy, loses momentum due to the country's recent housing decline and sluggish consumer spending. The headline surrounding China’s economic woes remains in investors’ focus.
Furthermore, some Chinese banks were instructed by the People's Bank of China (PBOC) to minimize their overseas investments under the Bond Connect scheme, according to Reuters. Chinese central bank looks to target outflows and limit the amount of Yuan offshore.

Japan’s Nikkei leads losses by almost 2%, dragged by tech stocks. Japanese Finance Minister Shunichi Suzuki stated on Friday that authorities will monitor the impact of the Jackson Hole talks on the global economy.

In Indonesia, the central bank decided to maintain its benchmark interest rate at 5.75% for the seventh consecutive meeting on Thursday and for the entire year.

Looking ahead, market participants await Friday’s speech from Fed Chairman Jerome Powell at the Jackson Hole Symposium. The speech could provide insights into economic conditions and hints about further monetary policy.