Asian Stocks Rise as Dollar Faces Worst Monthly Performance in Nine Months
Asian stocks are on the rise in August as the dollar is looking at its worst monthly performance in nine months, with the Federal Reserve expected to cut interest rates next month. The release of the U.S. core personal consumption expenditures (PCE) price index and euro zone inflation data will offer further insight into the rate outlook across major economies.
MSCI's broadest index of Asia-Pacific shares outside Japan is up 0.44%, with U.S. stock futures also showing positive momentum. Solid growth in the world's largest economy has overshadowed disappointing results from Nvidia, leading to gains in global markets.
Despite a turbulent August, financial markets are showing signs of stabilization. The focus remains on the Fed's easing cycle, with markets pricing in about 100 basis points worth of rate cuts by the end of the year. The dollar is struggling against major currencies, with expectations of further rate cuts weighing on its performance.
In commodities, oil prices are edging higher amid supply concerns in the Middle East. Gold prices are also up, supported by the prospect of an imminent Fed easing cycle and a weaker dollar.
Overall, the market outlook is positive with signs of recovery and potential rate cuts by major central banks. Investors should remain cautious and monitor economic data closely to make informed decisions about their investments.