Stocks Rise, Dollar Dips on Hopes for Fed Easing – Asia Market Wrap

Asian markets rallied but the dollar sank on predictions of a Federal Reserve rate cut this year, with US inflation data expected this week likely to show lessening price pressure.

Stock markets in Hong Kong, China, Australia, South Korea, and Japan rose on Monday, but US equities futures were little changed. The Australian dollar, euro, and yen all climbed somewhat against the US dollar, with Bank of Japan Deputy Governor Shinichi Uchida predicting the end of the war against deflation.

Global investors are optimistic that the Federal Reserve, together with the European Central Bank and its partners, will lower interest rates this year. This, along with solid corporate profits and signals from US authorities indicating that more rate rises are unlikely, has lifted market morale.