Asian stocks hike on concerns about US rate cuts

Asian shares were subdued on Monday as investors awaited the US Federal Reserve’s decision on rate cuts, as reported by Reuters.

Oil prices dropped over one per cent due to easing Middle East tensions, while gold prices hit a new high.

Asian shares outside Japan rose by 0.17 per cent, and Japan’s Nikkei increased by 0.78 per cent.

US job growth exceeded expectations in March, indicating a strong economy.

Markets are now pricing in a 48 per cent chance of a rate cut in June, down from 60 per cent the previous week.

Investors are anticipating a total of 62 basis points in cuts this year. Focus this week will be on the US CPI report, which is expected to show a slight decrease in core inflation to 3.7 per cent in March.

China mainland stocks reopened after holidays, with the blue-chip gauge down by 0.45 per cent. Hong Kong’s Hang Seng Index rose by 0.33 per cent.