Asia stocks edge higher, dollar in the doldrums

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SYDNEY : Asian stocks followed Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.Helping to mellow the mood was news that Shanghai authorities will cancel many con

SYDNEY : Asian stocks followed Wall Street higher on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.

Japan's Nikkei climbed 1.3 per cent and South Korea rose 0.9 per cent. Nasdaq futures added another 0.4 per cent, after gaining 6.8 per cent last week, while S&P 500 futures firmed 0.3 per cent, having rallied 6.6 per cent last week in their best week so far this year. "This though still implies rate rises at every remaining Fed meeting of 2022, including 50bps hikes in both June and July and at least 25bps at each of the remaining three."

"U.S. economic data appear be to slowing, ECB officials are debating even faster initial rate hikes, and front-end rate differentials have started to move in the euro's favour," noted Goldman Sachs analyst Zach Pandl. Payrolls are forecast to rise a solid 320,000, though that would be down from April, with unemployment at 3.5 per cent.

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