Shares turn cautious ahead of Warsh speech; FX, bonds hold breath

Asian equities lost momentum on Friday, according to Business Recorder, after a technology rally fuelled by Nvidia's strong results. Taiwan's shares gained 1.2 per cent after the chipmaker jumped nearly 9 per cent overnight, while South Korea's KOSPI fell 1 per cent and Hong Kong's Hang Seng slipped 0.3 per cent. Investors are now watching Federal Reserve chair Kevin Warsh, who is due to speak at the Jackson Hole Symposium later in the day.

Traders in futures markets put the chance of a Fed rate hike at its September 16 meeting near 35 per cent, and a move by December is fully priced. Analysts at ANZ said markets want Warsh to clarify how the Fed will respond, though they do not expect explicit forward guidance. Longer-dated yields have risen since the July meeting, as several policymakers push for higher rates to contain price pressures.

Oil was on track for weekly losses even as Iran and Oman agreed to jointly administer traffic through the Strait of Hormuz and share the revenue. Washington, meanwhile, has displayed scant enthusiasm for restarting direct discussions with Tehran. Brent crude was 0.1 per cent lower at $89.63 a barrel, yet the contract is on course to shed more than 5 per cent this week. Gold fell 0.3 per cent to $4,587 an ounce and is poised for a 0.2 per cent weekly decline.