Asia Markets Trade Cautiously Ahead of Fed Chair Warsh's Jackson Hole Speech

Australian household spending rose by 1.1% in July, nearly triple the forecasted 0.4%, with annual growth accelerating to 7.0% from 6.1%. This data adds to the hawkish narrative building around the Reserve Bank of Australia and builds further on the case for an RBA hike established by Wednesday's stronger than expected CPI print.

The Australian dollar remained underpinned by growing rate hike expectations, while China's industrial profit growth slowed to a 7-month low of 11.2% annual pace in July. The Bank of Japan Deputy Governor Ryozo Himino called for timely rate hikes to avoid a future spike in inflation that could force more abrupt tightening later.

The Bank of Korea delivered a second consecutive rate hike, lifting its policy rate to 3.00%. Nvidia posted better than expected second quarter fiscal 2027 results after Wednesday's close, but shares slipped as much as 3% in after-hours trading against high investor expectations. The company now expects fiscal 2028 revenue growth of around 70%, well above the roughly 44% analysts had previously forecast.