Asian stocks rise on fading prospects of Fed rate hike

Omkar Godbole FXStreet Contributor

A firmer Wall Street lifted Asian stocks this Monday morning as Friday’s weak US Inflation data dampened the prospects of a Fed rate hike later this year.

Scorecard - Australia’s SP/ASX 200 is up 25 points. Hang Seng has added 200 points. The Shanghai Composite is trading dead flat. Meanwhile, Japan’s Nikkei fell 170 points, tracking Yen strength. MSCI's broadest index of Asia-Pacific shares outside Japan strengthened 0.4%, following a three-day losing streak.

US stocks strengthened on Friday as investors bet on slower U.S. rate hikes following weaker-than-expected consumer price data, although caution still exists on account of the US-NKorea tensions.

Investors await a batch of Chinese data due at 02:00 GMT, including industrial output and retail sales. Geopolitics remains a focal point for the markets in the short-term. Tensions are expected to rise ahead of an annual joint US-South Korean military exercise scheduled on August 21.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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