SINGAPORE — Asian stocks mostly rose on Monday, spurred by record high closes for the Dow and S&P 500 on bets that the Federal Reserve’s policy will remain accommodative following lackluster U.S. data, which sent the dollar reeling to a 10-month low.
Chinese stocks fell over 2 percent in early trade but recouped some of the losses after data showed the economy grew at a slightly faster than expected pace of 6.9 percent in the second quarter thanks to robust industrial output and retail sales.
The CSI 300 was 0.7 percent lower, and the Shanghai Composite was down 1.1 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent on Monday. Japanese markets were closed for a holiday.
Australian shares were 0.3 percent lower, while South Korea’s KOSPI jumped 0.3 percent.
The dollar index, which tracks the greenback against a basket of trade-weighted peers, hit a 10-month low early on Monday. It was trading flat at 95.156 after losing 0.6 percent on Friday.
“Friday’s U.S. data led to more USD selling,” Stephen Innes, senior trader at OANDA, wrote in a note.
“With less than a 50 percent December rate hike probability priced in, and with no supportive Fed speak on the calendar before July 26th, the dollar could struggle.”
U.S. 10-year Treasury yields, however, which fell to as low as 2.279, recovered to end at 2.3319 percent on Friday.