Asia close: Stocks end mixed, Bank of Korea leaves door open to more cuts
Asian equities ended the session on a mixed note with investors opting to sit on their hands of a potentially key speech from US Federal Reserve chairman which could be expected to have global implications.
In his keynote speech at the 2020 Jackson Hole Economic Policy Symposium, Jerome Powell was expected to lay out the case for so-called 'inflation targeting' which, all else equal, would imply easier monetary policy for longer.
The Shanghai Stock Exchange's composite index ended the day 0.61% higher to 3,350.11, while Australia's ASX 200 edged up 0.16% to 6,126.2.
Buyoing the Chinese benchmark index were data showing a 19.6% year-on-year jump in industrial profits for the month of July, up from June's 11.5% rise.
Japan's Nikkei-225 however drifted lower by 0.35% to 23,208.86 while the Hang Seng was down 0.83% at 25,281.15.
According to Japan's Ministry of Economy, Trade and Industry, the all-industry activity index increased at a month-on-month clip of 6.1% in June, more than reversing the 4.1% fall seen in May but falling a tad short of the 6.3% rise expected by economists.
US dollar/yen was little changed in the background, up by only 0.11% to 106.11.
Underlining the somewhat cautious mood in markets, rate-setters at South Korea's central bank kept short-term rates unchanged but central bank Governor, Lee Ju-yeol, kept the door open to further easing if needed.
Bank of Korea also downgraded its projections for GDP growth in 2020, from -0.2% to -1.3% on the back of the recent second wave of Covid-19.
Nonetheless, Pantheon Macroeconomics's Miguel Chanco said Lee had also sounded "less enthusiastic" when it came to the possible adoption of non-traditional measures like quantitative easing or yield curve control.