Asian Stocks Rise as Rate Hike Risks Fade
Asian stocks rose on Monday as markets grew more cautious about a potential interest rate hike from the Federal Reserve. The US dollar slipped to two-month lows, weighed down by soft economic data, including an unexpected decline in retail sales.
The MSCI Asia-Pacific index excluding Japan climbed 0.50% after China's blue-chip stocks gained 0.80%. The Hang Seng index in Hong Kong rose 1.60%, ahead of key economic data due later in the day.
Forecasts indicate a slowdown in industrial output growth to 4.80% from 5.30% previously, but investors may be bracing for an upside surprise given robust exports last month.
The Federal Reserve's chances of raising interest rates next month have dropped sharply, with only a 30% probability now, down from about 50% a week earlier, according to the CME Group's FedWatch tool.