HONG KONG, Aug 22 — Asian markets stuttered today but dealers remain wary following the release of Federal Reserve minutes that provided a mixed bag, with a speech by its chair at the end of the week the key point of focus.

Donald Trump provided some fresh hope for China-US trade talks by saying a deal will “probably” be made, and Wall Street ended with healthy gains thanks to blockbuster results from retailers that indicated strong consumer demand.

But investors in Asia were playing it cool ahead of Jerome Powell’s address to the central bankers’ symposium at Jackson Hole, Wyoming, tomorrow which will be scrutinised for an idea of Fed interest rate policy.

Minutes from the bank’s July meeting — when it cut rates for the first time since the financial crisis — said policymakers were flexible and borrowing costs were not on a “preset course” despite trade uncertainty and weak global growth.

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Stephen Innes of Valour Markets said the minutes “painted a convincing enough picture that the Feds will continue to go along with the market’s expectations for more cuts, as they will not want to tighten financial conditions, but at the same time not feel pressured to get ahead of the curve”.

While the global economy stutters and the China-US trade row rumbles along, equity markets have found some solace in expectations the Fed will continue to lower rates.

Disappointment risk

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But Oanda senior market analyst Jeffrey Halley pointed out that the minutes showed two governors wanted a 50 basis-point cut, two did not want a cut at all and the rest settled on 25 basis points, which was eventually chosen.

“It is hard to see Mr Powell announcing or implying an aggressive new easing cycle in isolation when just a month ago, the (policy board) was clearly very split as well,” Halley said.

“The danger is most definitely that Chairman Powell disappoints”.

Tokyo ended 0.1 per cent higher, Shanghai edged up 0.1 per cent and Sydney gained 0.3 per cent.

Singapore put on 0.1 per cent and Wellington gained 0.2 per cent while Taipei was marginally higher.

But Hong Kong was 0.8 per cent lower, while Seoul closed down 0.7 per cent, Manila shed 1.3 per cent, Mumbai retreated 0.6 per cent and Jakarta lost 0.6 per cent.

In early trade, London fell 0.3 per cent, while Paris was flat and Frankfurt rose 0.3 per cent.

Crude prices edged up following a recent rally fuelled by trade talks optimism and hopes for more rate cuts, though Halley warned they could quickly reverse course.

“Oil would be one of the most vulnerable markets to a Powell disappointment on Friday, and this should temper and short-term exuberance over the next 24-hours,” he said.

Key figures around 0810 GMT

Tokyo - Nikkei 225: UP 0.1 per cent at 20,628.01 (close)

Hong Kong - Hang Seng: DOWN 0.8 per cent at 26,048.72 (close)

Shanghai - Composite: UP 0.1 per cent at 2,883.44 (close)

London - FTSE 100: DOWN 0.3 per cent at 7,184.85

Euro/dollar: UP at US$1.1085 from US$1.1083 at 2040 GMT

Pound/dollar: UP at US$1.2123 from US$1.2121

Euro/pound: UP at 91.45 pence from 91.42 pence 

Dollar/yen: UP at ¥106.35 from ¥106.23

West Texas Intermediate: UP 15 cents at US$55.83 per barrel

Brent North Sea crude: UP 11 cents at US$60.41 per barrel

New York - Dow: UP 0.9 per cent at 26,202.73 (close) — AFP