Asian stocks hit two-week highs on Wednesday, while the dollar wobbled as weak U.S. labor market data bolstered bets that the Fed’s rate hike cycle could be nearing the end.<\/p>\n
Overnight data showed U.S. job openings dropped to the lowest in nearly two-and-a-half years in July, signaling easing labor market pressures and allowing the Fed room to forgo more rate increases this year.<\/p>\n
The CME FedWatch Tool shows that markets<\/span> are now pricing in an 89 percent chance of the Fed standing pat at its meeting next month and a 50 percent chance of another pause at the November meeting.<\/p>\n U.S. nonfarm payrolls and personal consumption expenditure reports due this week are expected to provide a much clearer economic picture.<\/p>\n Gold held near three-week high in Asian trading, while oil prices climbed on data showing a large U.S. stockpile draw and concerns over the Hurricane Idalia, which crawled towards Florida’s Gulf Coast.<\/p>\n China’s Shanghai Composite Index fluctuated before ending marginally higher at 3,137.14 as investors awaited Thursday’s PMI data for directional cues.<\/p>\n Hong Kong’s Hang Seng Index finished marginally lower at 18,482.86 despite reports that China’s largest banks are preparing to cut interest rates on existing mortgages and deposits.<\/p>\n Japanese shares eked out modest gains after rising U.S. yields pushed the yen to its lowest in almost 10 months.<\/p>\n The Nikkei 225 Index rose 0.3 percent to 32,333.46, extending gains for a third straight session and reaching its highest level since August 10. The broader Topix Index settled 0.4 percent higher at 2,313.38.<\/p>\n Banks and Kyocera topped the gainers list to rise 1-2 percent. Toyota Motor ended up more than 1 percent after an announcement that it would restart operations at its assembly plants in Japan on Wednesday.<\/p>\n Australian markets rallied to reach a two-week high after data showed Australian consumer price inflation slowed to a 17-month low in July, helping move the discussion toward the prospect of interest-rate cuts.<\/p>\n The benchmark S&P ASX 200 Index jumped 1.2 percent to 7,297.70, while the broader All Ordinaries Index closed 1.2 percent higher at 7,506.80.<\/p>\n Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index finished marginally lower at 11,521.12 after the release of weak housing data.<\/p>\n Seoul stocks rose for a third consecutive session, with the Kospi rising 0.4 percent to 2,561.22 on hopes for Fed rate pause. <\/p>\n U.S. stocks rose sharply overnight and Treasury yields eased, as data showing a dip in job openings for the third straight month and deteriorating consumer confidence raised hopes of a pause in interest rate hikes by the Federal Reserve.<\/p>\n The tech-heavy Nasdaq Composite jumped 1.7 percent to extend gains for a third day running, while the S&P 500 rallied 1.5 percent and the Dow advanced 0.9 percent. <\/p>\n