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Asian stocks pause rally, eyeing China stimulus, Powell testimony

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Investors are looking ahead to China's rate decision and Fed testimony from Jerome Powell.

to discuss measures to spur economic growth, but concerns remain whether they would be enough to revive a faltering economy.

"Given that 2Q GDP growth is tracking at 0%, a strong sequential growth re-acceleration will be needed for full-year GDP growth to reach the government target of "around 5%"," said chief China economist Robin Xing.U.S. Secretary of State Antony Blinken will "Fed Chair Powell gives House and Senate testimony with focus on whether the July FOMC meeting is truly 'live', and if the Fed dot plot of two more hikes is a true base case depending on the data or more 'aspirational'," said Ray Attrill, head of foreign exchange strategy at National Australia Bank.

The dollar index was little changed against major peers at 102.34 early on Monday, after falling 1.2% the previous week, the most in five months.

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