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Monday 12 September 2016

Asia stocks gain, dollar sags on Fed governor's dovish comments

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Asian stocks rose on Tuesday after Federal Reserve Governor Lael Brainard calmed global markets with remarks that appeared to reduce the prospects of a near-term interest rate hike. 

The dollar, on the other hand, nursed losses against its peers after Brainard reiterated her dovish views and warned against a rush to raise rates. 


Spreadbetters expected the upswing for equities to continue in Europe, forecasting a higher open for Britain's FTSE, Germany's DAX and France's CAC. 


MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent, after tumbling 2.4 percent on Monday. 


Japan's Nikkei was up 0.3 percent.


South Korea's Kospi rose 0.5 percent and Australian stocks advanced 0.1 percent. Hong Kong's Hang Seng added 0.8 percent and Shanghai bucked the trend to lose 0.2 percent. 


Investors were unfazed by a run of relatively upbeat Chinese data that included industrial output, which rose a better-than-expected 6.3 percent in August, further dimming expectations of a rate cut any time soon. 


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