Asian stock markets are trading mostly higher on Monday, following the mixed cues from Wall Street on Friday, on renewed optimism about the outlook for interest rates as recent data pointed to some softness in the U.S. labor market, increasing the chances of the US Fed lowering interest rates in the coming months. Asian markets closed mostly higher on Friday.
Traders also remain cautious ahead of the crucial U.S. inflation data later this week that could offer important clues on the Fed's rate trajectory. While the Fed is still widely expected to leave interest rates unchanged in June, there is a 74.2 percent chance rates will be lower by September, according to CME Group's FedWatch Tool.
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Market Analysis
August 21, 2026 14:42 ET The minutes of the latest policy meeting of the Federal Reserve, housing market data and manufacturing sector survey results were the main news for the U.S. economy this week. In Europe, inflation data from the U.K. was the highlight, while consumer price data from Japan drew attention in Asia.