Asian shares hit a one-month low during Thursday’s Asian session as investors brace themselves for the highly-anticipated remarks of Federal Reserve Chairman Ben Bernanke who will be addressing the Fed Summit in Jackson Hole, Wyoming on Friday. Japan’s Nikkei 225 Index dipped 0.76 percent while Hong Kong’s Hang Seng Index plummeted 1.39 percent. Australia’s S&P/ASX200 was also 1.09 percent lower on Thursday.
In Thursday’s tradings the yen gained against the dollar, rising 0.3 percent overnight, while the euro steadied 0.1 percent, hitting $1.2537. The Australian dollar hit a one month low against the greenback on Thursday, hovering around the $1.0320 mark.
European Central Bank President Mario Draghi has bowed out of his expected attendance at the Fed summit, blaming a heavy workload for his absence. Though the event was previously expected to bring movement to the markets, analysts are now predicting a slowdown through next week as the ECB’s policy meeting will be held on September 6th and a US jobs report will be published the following day. Investors have long been expecting Bernanke to announce another stimulus plan, but recent reports from the US show a stronger job market and improving retail sales, both of which show a marked improvement in the country’s economy.
Consequently, many are now questioning whether Bernanke will announce a plan or will choose to hold off as the nation’s economy slowly improves without the need for additional intervention.