Oddbean

Asia stocks gain, dollar drifts as inflation tests await ========== Asian stocks rose on Friday, poised for the fourth month of gains, while the dollar drifted lower. Investors are awaiting inflation readings from Europe and the U.S. that will likely dictate the path of interest rates globally. The U.S. economy grew more slowly than expected in the first quarter, weighing on Treasury yields and the dollar. Market pricing puts a September rate cut by the Federal Reserve at a coin toss. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.55%, while Japan's Nikkei was up 0.20%. China stocks also rose, with the blue-chip index up 0.23% and Hong Kong's Hang Seng index spiking 1.3% higher. The upturn in China's markets came even as the nation's manufacturing activity unexpectedly fell in May. Traders are also watching for any hints of intervention from the Tokyo authorities as the Japanese yen flirts with levels that led to suspected bouts of intervention in April and early May. The yen was last at 156.74 per dollar. The euro last fetched $1.0828 ahead of an inflation report from the euro zone that is set to influence the European Central Bank's policy path. Oil prices eased after a surprise build in U.S. gasoline stocks weighed on the market. Gold prices rose 0.12%. #AsiaStocks #Dollar #Inflation #InterestRates https://www.investing.com/news/economy-news/asia-stocks-gain-dollar-drifts-as-inflation-tests-await-3464847