Investors tend to hold back while waiting for policy signals from the Federal Reserve (The Fed), which will be delivered during the annual symposium in Jackson Hole, Wyoming, this week.
MSCI Asia-Pacific Index fell about 0.2%, following the weakness in Wall Street from the previous day.
Meanwhile, the European markets opened more optimistically, with Euro Stoxx 50 futures rising 0.3%, German DAX gaining 0.2%, and the UK FTSE rising 0.3%.
In the commodity market, world oil prices fell slightly 0.2% to 63.29 US dollars per barrel, while gold remained stable in the range of 3,334.9 US dollars per ounce.
Dollar AS also recorded a slight strengthening amid global uncertainty.
The Jackson Hole economic symposium has become the focus of market participants. Federal Reserve Chair Jerome Powell is scheduled to deliver a speech on August 22 with the theme "Economic Outlook and Framework Review."
This speech is considered crucial because it could serve as a guide for the future direction of U.S. monetary policy.
Market players expect the Fed to cut interest rates by 0.25 percentage points in September.
The CME FedWatch data shows the probability of a rate cut currently reaching around 84%.
The Fed's monetary policy has always been a benchmark for global financial markets.
The decision in Jackson Hole is seen as not only affecting the direction of American stock indices, but also the flow of capital in Asia and developing countries.
"Every word that comes out of Powell will be carefully read by the market. Dovish signals could boost risk appetite, while a hawkish tone has the potential to pressure risk assets," said a global market analyst quoted by Reuters.
With still fragile sentiment, global market players are being cautious while waiting for the direction of the world's largest central bank's policy.***
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