Asia stocks bounce after losses, dollar sags on weak US inflation data

Asia stocks bounce after losses, dollar sags on weak US inflation data

Asian stocks bounced on Monday after three losing sessions, tracking a firmer Wall Street, while the dollar was weighed down by weak US inflation data which dampened prospects of another Federal Reserve interest rate hike later this year.

Investors awaited a batch of Chinese data due later in the session (0200 GMT), including industrial output and retail sales. The readings are expected to show continued solid growth but markets are edgy after softer-than-expected trade data last week.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.4 percent. The index had fallen for three straight days prior on escalating tensions between the United States and North Korea.

Australian stocks rose 0.2 percent and South Korea’s KOSPI .KS11 climbed 0.7 percent.

Japan’s Nikkei bucked the trend and fell 1.2 percent as a stronger yen overshadowed much better-than-expected second quarter economic growth.

The three major US  stocks indexes snapped three days of losses and ended higher on Friday, as investors bet on slower US  rate hikes following weaker-than-expected consumer price data. But gains were muted by increasingly aggressive exchanges between Washington and Pyongyang. [.N]

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