Asian stocks rise on China data, Fed rate hike bets

Asian stocks rose strongly on Friday, extending a global equity rally, after better-than-expected Chinese economic data added to the good vibes from expectations that tightening campaigns by the world’s biggest central banks were close to over.

The dollar stuck close to a six-month peak from overnight against major peers, buoyed by robust U.S. economic data, while the euro sagged following the European Central Bank’s signal that Thursday’s rate hike was probably the last this cycle.

Crude oil hit a fresh 10-month top.

Here are some of the key takeaways from the article:

• Asian stocks rose on Friday, led by gains in China, after better-than-expected economic data and expectations that central bank tightening cycles were nearing their end.
• The dollar held near a six-month high against major peers, while the euro slipped after the ECB signaled that Thursday’s rate hike was probably the last this cycle.
• Crude oil prices rose to a fresh 10-month high.

Here are some of the reasons for the market moves:

• The Chinese data showed that retail sales and industrial output grew more than expected in August, suggesting that the economy is recovering from a recent slowdown.
• The ECB’s decision to hike rates by 0.25 percentage points was widely expected, but its signal that this was probably the last rate hike this cycle was seen as a positive for risk assets.
• The strong U.S. economic data also supported the dollar, while the euro came under pressure as investors priced in the possibility of a slower pace of European rate hikes.
• Crude oil prices rose as concerns about supply disruptions outweighed concerns about the impact of higher interest rates on demand.

Overall, the market moves on Friday suggest that investors are becoming more optimistic about the global economic outlook and are betting that central banks will not need to tighten monetary policy as much as previously thought.

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