Asian markets fluctuate ahead of key earnings and Powell [Video]

Asian investors trod carefully Tuesday after the latest bounce in optimism fuelled by hopes Federal Reserve boss Jerome Powell will signal an interest rate cut in a highly anticipated speech to top central bankers this week.

With recent data indicating the US economy remains in good shape as inflation slows and the labour market softens, there is widespread expectation the bank will finally start unwinding its long-running programme of tight monetary policy next month.

A slew of earnings from US stores Target, Lowe’s and TJX are also on tap this week, providing more insight into the confidence of consumers after reassuring retail sales figures last week.

But the main focus is Powell’s remarks to the annual symposium of world central bank leaders and financiers at Jackson Hole, Wyoming, which is seen as a possible launchpad for the Fed’s rate-cut cycle.

Bets have surged that officials will cut rates 25 basis …