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US:

Optimism over interest rate cuts saw Wall Street indexes come close to record highs on Friday.

Asia:

Most markets in Asia-Pacific region were trading higher on Monday, taking cues from the last week gains on Wall Street as the US Federal Reserve Chair Jerome Powell's remarks assured traders of monetary easing from next month.

India:

On Friday, the NSE Nifty 50 and BSE Sensex ended the muted session little changed, and posted a two-week winning streak. Market participants awaited Powell's speech at the Jackson Hole gathering, Wyoming. Market is expected to open on a positive note and likely to witness range bound move during the day.

Global Economy:

Japan's core inflation accelerated for a third straight month in July, data showed on Friday, but a slowdown in demand-driven price growth could complicate the central bank's decision on further interest hikes in the coming months. The nationwide core consumer price index (CPI), which excludes fresh food items, rose 2.7% from a year earlier, faster than a 2.6% climb in June. It matched the median market forecast and put the inflation rate at or above the central bank's 2% target for the 28th straight month. But the "core core" index, which excludes fresh food and energy costs and is closely watched by the Bank of Japan (BOJ) as a key gauge of broader inflation trends, rose 1.9% after increasing 2.2% in June. It dipped below the key 2% line for the first time since September 2022.

Singapore's key consumer price gauge rose 2.5% in July from a year earlier, the smallest increase since February 2022, official data showed on Friday. The core inflation rate - which excludes private road transport and accommodation costs - was lower than a 2.9% forecast in a Reuters poll, and compared with the 2.9% seen in June. Inflation in the Asian financial hub has cooled from a peak of 5.5% in early 2023, but only dropped below 3% in June.

Commodities:

Gold prices ticked up on Monday, extending gains from the last session as Federal Reserve Chair Jerome Powell's dovish remarks solidified expectations of an interest rate cut next month.

Oil prices rose in Asian trade on Monday, extending a rebound from the prior session as media reports showed no progress towards an Israel-Hamas ceasefire while hostilities in the region persisted.

Currency:

The U.S. currency hovered near its lowest in 13 months against the euro. It also sagged closer to levels last seen in March 2022 versus sterling, with Bank of England head Andrew Bailey's comments that it was "too early to declare victory" over inflation signaling a less aggressive stance on interest rate cuts than the Fed.

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