Asia Stocks Pause as Fed, Russia-Ukraine Talks Weigh on Sentiment

• Most Asian benchmarks trade flat to lower after Monday’s rally.

• Investors eye Fed’s Jackson Hole Symposium and Russia-Ukraine peace efforts.

• Chinese and Indian stocks stall after strong gains; Japanese indexes hold near records.

Asian stocks traded in a narrow range on Tuesday, easing after strong gains in the prior session as investors stayed cautious over ongoing Russia-Ukraine peace negotiations and awaited fresh policy signals from the U.S. Federal Reserve.

The region tracked a muted overnight session on Wall Street, where major U.S. indexes also paused following an early-August rally. S&P 500 futures slipped 0.1% in Asian trade, with attention centered on Fed Chair Jerome Powell’s upcoming remarks at the Jackson Hole Symposium later this week.

South Korea’s KOSPI dropped 0.5%, weighed down by profit-taking in major technology names. Singapore’s Straits Times Index rose 0.3%, hovering near record highs.

China and India stall after rally
Chinese shares were little changed, with the Shanghai Composite and CSI 300 flat after hitting multi-year highs on Monday. Hong Kong’s Hang Seng Index edged 0.2% lower.

India’s Gift Nifty futures slipped 0.2%, pointing to a weaker open after Monday’s strong gains. The rally had been fueled by hopes of progress in resolving the Russia-Ukraine conflict, but comments from U.S. President Donald Trump on Monday suggested that negotiations could be protracted, tempering optimism.

The conflict remains a flashpoint for China and India, both under pressure from U.S. trade threats linked to their continued purchases of Russian crude. While Trump refrained from imposing new tariffs on Chinese goods, he did authorize duties of up to 50% on Indian imports starting later this month.

Japan holds firm near records
Japan’s Nikkei 225 and TOPIX indexes were steady after setting record highs in the previous session, supported by robust second-quarter GDP figures. The stronger growth has raised expectations the Bank of Japan could consider a rate hike later this year.

Among individual stocks, SoftBank Group (TYO:9984) slid nearly 2% after unveiling a $2 billion investment in struggling U.S. chipmaker Intel (NASDAQ:INTC). The deal positions SoftBank as one of Intel’s top shareholders and underscores its push into semiconductors and artificial intelligence.

Elsewhere in Asia
Australia’s ASX 200 fell 0.6% after Monday’s record high, though sentiment was supported by a private survey showing improved consumer confidence in August amid expectations of further rate cuts by the Reserve Bank of Australia.