Recent days have seen cautious trading as investors parse a mixed outlook for the global economy, beset by worries over inflation even as a boom in tech -- especially artificial intelligence -- continues.

US Federal Reserve Chairman Jerome Powell is set to deliver remarks during an annual gathering of central bankers in Jackson Hole, Wyoming on Friday, a key event for observers weighing the chances of a rate cut at a September meeting of policymakers.

Powell has come under intense public pressure this year from President Donald Trump to lower rates -- an unusual political intervention at the independent central bank.

Stock markets across Asia were split across mostly narrow ranges on Friday afternoon, roughly seven hours before Powell's speech.

Tokyo's Nikkei index closed up 0.1 percent, an improvement from Thursday's 0.7 percent drop.

Japan announced Friday that core inflation had eased to 3.1 percent in July from 3.3 percent the previous month -- still above its central bank's two-percent target and boosting expectations of an October rate hike.

Meanwhile, Shanghai's main index finished up 1.5 percent, breaking 3,800 points for the first time in a decade as shares in Chinese semiconductor firm Cambricon surged.

Benchmarks in Hong Kong, Seoul and Bangkok also rose, while Sydney and Taipei were down.

Early trading in Europe saw shares in London and Paris edge down.

After a shaky few days on Wall Street, Asia "should act as a safe harbour while the Fed's credibility is under the spotlight", said Chris Weston, head of research at Pepperstone, in a note.

Still, "hesitation to push risk higher will remain", he said, adding that there is "a very low probability" of Powell calling explicitly for rate cuts in his speech later in the day.

Also weighing heavily on investors' minds is the potential for a peace deal in Ukraine more than three years after Russia's invasion.

Trump on Thursday set a two-week time frame for assessing peace talks between Moscow and Kyiv, following days of high-stakes diplomacy that saw him meet with Russian and Ukrainian counterparts in person, as well as several European leaders.

Observers have been speculating lately about the impact on oil markets of the possible lifting of sanctions on Russia, a major producer.

Oil prices were flat on Friday afternoon, slowing from gains made in recent days.

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: UP 0.1 percent at 42,633.29 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 25,226.27

Shanghai - Composite: UP 1.5 percent at 3,825.76 (close)

London - FTSE 100: DOWN 0.1 percent at 9,300.49

Euro/dollar: DOWN at $1.1598 from $1.1604 on Thursday

Pound/dollar: DOWN at $1.3410 from $1.3412

Dollar/yen: UP at 148.45 yen from 148.37 yen

Euro/pound: DOWN at 86.49 pence from 86.52 pence

West Texas Intermediate: UP 0.1 percent at $63.56 per barrel

Brent North Sea Crude: FLAT at $67.67 per barrel

New York - Dow: DOWN 0.3 percent at 44,785.50 (close)

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INDEX CORP.

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