Asian stocks rose on Monday, led by Chinese indices, while the dollar fell to near two-month lows after weak US economic data reinforced expectations that the Federal Reserve will soon back away from tightening its monetary policy.
The MSCI Asia Pacific ex-Japan index rose 0.5%, and Hong Kong's Hang Seng index gained 1.6% ahead of the release of Chinese manufacturing data. Meanwhile, bets on a US interest rate hike in September fell to just 30%, weighed down by a surprise drop in US retail sales and consumer confidence.
The easing of monetary tightening was reflected in the currency market, with the euro hitting a two-month high of $1.1588 and yields on two-year US Treasury bonds reaching 4.154%.
In the commodities markets, oil prices were mixed as tensions continued in the Strait of Hormuz, with Brent crude at $88.67 a barrel, while gold rose by about 0.4% to $4,391 an ounce, as markets awaited purchasing managers' indices and earnings results from major US retailers this week.
