TOKYO (AP) — Asian shares were mixed in muted trading Friday ahead of a speech by Federal Reserve Chairman Jerome Powell that could provide clues about how quickly and thoroughly the Fed plans to cut interest rates.

Japan’s benchmark Nikkei 225 rose 0.5% to 38,408.44. Australia’s S&P/ASX 200 fell 0.1% to 8,017.10. South Korea’s Kospi fell slightly, 0.1% to 2,704.79. Hong Kong’s Hang Seng fell 0.4% to 17,569.38, while the Shanghai Composite rose 0.3% to 2,856.73.

Japan’s interest rate plans were also being closely watched. Bank of Japan Governor Kazuo Ueda appeared to indicate in remarks to parliament that more hikes would come, but that they would be gradual. The Bank of Japan was closely watching recent swings in stock prices and currencies, but saw recent wage increases as a positive sign, he said.

Japan’s economy has been dragged down for years by deflation, a gradual decline in prices that reflects a stagnant economy. The bank ended negative interest rates in March and raised rates in July.

“We maintained a very loose monetary policy until March. The point was our commitment to that until it is confirmed that the economy is on track to achieve a gradual, stable price increase that is sustainable,” Ueda told lawmakers.

Next week, data on GDP, or gross domestic product (the value of a country’s products and services), is expected from the US, Canada, Germany and India.

On Wall Street, the S&P 500 fell 0.9% for its worst day after a two-week rally. The Dow Jones Industrial Average fell 177 points, or 0.4%, and the Nasdaq Composite fell 1.7%.

Stock prices were weighed down by a mixed picture from the US economy, which has slowed under pressure from high interest rates meant to control inflation.

A report showed that slightly more U.S. workers filed for unemployment benefits last week than expected.

A second report suggested that U.S. business activity remains deeply divided. Growth in service companies is accelerating, according to preliminary data from S&P Global Market Intelligence. But the nation’s manufacturing sector appears to be shrinking at a more severe pace.

“Growth has become increasingly dependent on the services sector as the manufacturing sector, which often leads the economic cycle, has declined,” said Chris Williamson, chief economist at S&P Global Market Intelligence.

The Fed has raised its key interest rate to the highest level in more than two decades. With inflation slowing, the Federal Reserve is widely expected to cut interest rates at its next meeting in September, which would be the first easing since the COVID-19 pandemic crash of 2020.

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That’s why there’s so much attention on Jackson Hole, Wyoming, where Powell will speak on Friday at an economic symposium that has seen major Fed policy announcements in the past.

One danger is that investors’ expectations for coming cuts have gone too far. U.S. companies continue to report mostly better-than-expected spring earnings.

Shares of Zoom Video Communications, one of the pandemic’s winners turned weaker, rose 13% after the company reported better-than-expected results and revenue.

Overall, more stocks on Wall Street fell than rose, including Nvidia, which was the heaviest stock in the S&P 500.

All told, the S&P 500 fell 50.21 points to 5,570.64. The Dow fell 177.71 points to 40,712.78 and the Nasdaq lost 299.63 points to 17,619.35.

On the bond market, the yield on the 10-year government bond rose from 3.80% to 3.86% on Wednesday evening.

In energy trading, U.S. benchmark crude rose 9 cents to $73.10 a barrel. Brent crude, the international standard, rose 10 cents to $77.32 a barrel.

In currency trading, the US dollar fell to 145.78 Japanese yen from 146.24 yen. The euro was worth $1.1131, up from $1.1115.

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AP Business Writer Stan Choe contributed. Yuri Kageyama is at X: https://x.com/yurikageyama