In This Article:
* MSCI Asia-Pacific index down 0.6 pct, Nikkei up 0.3 pct
* Fed Powell's Jackson Hole speech eyed for near-term cues
* Dollar buoyant against major peers, hits 2-wk high vs yen
* Aussie continues to struggle amid domestic political woes
By Shinichi Saoshiro
TOKYO, Aug 24 (Reuters) - Asian stocks fell on Friday after U.S.-China trade talks ended without progress, with the markets braced for a speech by Federal Reserve Chairman Jerome Powell for hints on the direction of U.S. monetary policy.
U.S. and Chinese officials ended two days of talks on Thursday with no major breakthrough. Meanwhile their trade war escalated with activation of another round of duelling tariffs on $16 billion worth of each country's goods.
MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.6 percent. It was still up about 0.85 percent on the week.
Hong Kong's Hang Seng fell 0.8 percent and the Shanghai Composite Index dropped 0.65 percent.
Australian stocks rose 0.2 percent, South Korea's KOSPI fell 0.35 percent and Japan's Nikkei climbed 0.3 percent.
"Global risk sentiment remains somewhat jittery ahead of Fed Chair Powell's speech with U.S.-Sino trade talks failing to yield any immediate progress," strategists at OCBC Bank wrote.
The S&P 500 shed 0.17 percent overnight to pull back slightly from a record high scaled midweek, with industrial shares sagging after the United States and China imposed a fresh round of trade tariffs on each other.
Shares of industrial giants Caterpillar Inc and Boeing Co, which have been bellwethers of trade sentiment, were among the biggest drags on the Dow, which lost about 0.3 percent. Caterpillar shares fell 2.0 percent, and Boeing shares fell 0.7 percent.
In immediate focus was the speech by the Fed's Powell to be given later on Friday at the Jackson Hole, Wyoming, meeting of central bankers.
Where Powell stands on the pace of interest rate hikes will be scrutinised after minutes from the Fed's most recent policy meeting indicated the central bank would tighten monetary policy soon.
"For equities, the key point will be whether Powell indicates that the Fed is poised to hike rates two more times this year. That would fall in line with expectations and not cause much of a stir," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.
"Any mention of recent turbulence in the emerging markets may also provide the risk asset markets with some relief."
U.S. President Donald Trump reiterated his displeasure with the Fed's rate hikes earlier this week and investors waited to see whether Powell would respond to such criticism.