TOKYO - Asian stocks eked out modest gains on Monday , amid a cautious market mood as investors pinned expectations on likely stimulus to support growth in the world's major economies, which showed further signs of struggle.Australian stocks edged up 0.1 per cent, South Korea's KOSPI rose 0.8 per cent and Japan's Nikkei was up 0.5 per cent.
Broader stock market gains were tempered in the wake of lacklustre economic data - US job growth slowed more than expected in August - although even this was seen as a positive factor for equities. Buoying market confidence on Monday were expectations the European Central Bank would cut interest rates on Thursday in one of the week's key events.
The dollar was capped as US yields came off two-week highs after Friday's soft US jobs report heightened expectations for a Fed rate cut.The euro was steady at US$1.1022, weighed down ahead of Thursday's ECB policy decision and in distance of a 28-month low of US$1.0926 set last week.