Global Stocks Steady as Investors Weigh US Rate Path and Economic Weakness

Global stocks held steady on Monday as investors weighed data that tempered expectations for higher US interest rates. The data showed signs of weakness in the world's biggest economy, which could indicate a softer labor market and easing inflation.

Closely watched reports pointed to a softening labor market and easing inflation, even though it remains above the central bank's two percent target. Investors are taking a 'bad news is good news' approach, hoping that the Federal Reserve will not tighten policy next month.

The data raised questions about the health of the economy, leading observers to warn that investors should be careful what they wish for. The prolonged energy pain from the US-Iran conflict has fed into inflation concerns, making it difficult for central bankers to keep inflation in check and the economy running healthily.

Attention now turns to the release of earnings this week from retail titans Walmart, Home Depot, and Target, which could give a clearer view of sentiment among American consumers. In Asia, Hong Kong was lifted by tech giants Alibaba, Tencent, and JD.com, while Shanghai and Taipei were also up.