Asia: Stocks end lower ahead of Jackson Hole

Asia stocks closed in the red on Thursday as traders held back ahead of the Federal Reserve’s Jackson Hole conference.

The Nikkei Stock Average closed down 0.3%, while the Shanghai Composite Index ended 0.6% lower and Hong Kong’s Hang Seng Index was flat.

At the same time oil prices wavered, falling in Asian trade but rebounding after the close. Brent crude rose 1.18% to $49.64 per barrel and West Texas Intermediate edged up $47.15 per barrel at 1637 BST.

With little else on the agenda, traders have been eagerly awaiting the Jackson Hole event. Fed chair Janet Yellen’s speech will be in focus for any remarks on whether the central bank feels the economy has strengthened enough to warrant an interest rate hike this year.

However, Neil Wilson, market analyst at ETX Capital, said “don’t expect much from Jackson Hole”.

"The Federal Reserve Bank of Kansas City’s annual economic policy symposium is a serious, sombre affair. It is not a policy meeting, nor is it meant to drive expectations for future policy decisions. It’s a talking shop and we should take the goods on offer with a healthy dose of salt.

"Markets are incredibly quiet this August (in sharp contrast to last year) so investors are latching on to anything they can, which gives this meeting a lot more attention than it probably deserves. Investors will hang on every word uttered by Janet Yellen, the Federal Reserve chair."

In China, the central bank injected more cash into the financial system after spooked investors cut positions on Thursday due to an expected strain on liquidity, particularly at the end of the month. The People’s Bank of China offered 80 billion yuan of 14-day reverse repurchase agreements in its daily money-market operation.

In corporate news, PetroChina Company Ltd. shares fell after reporting a 98% plunge in first half net profit.

China’s Cnooc Ltd. slumped after the company revealed a 7.7bn yuan net loss in the first half, compared with a 14.7bn yuan net profit last year.

In Japan, automative exporters benefitted from the view that the dollar could strengthen against the yen on Yellen’s upcoming comments. Shares in Nissan Motor Co and Mazda Motor Corp. jumped.