Asia stocks set to rise as Fed hike bets cool and dollar falls

  • Asian equity futures pointed higher as investors reduced September Federal Reserve hike bets.
  • Swaps priced even odds of a September quarter-point hike, versus about 70% earlier this week.
  • Christopher Waller supported steady rates if price pressures continue easing.

Asian stocks were poised to gain Friday after Wall Street advanced as investors reduced expectations for a Federal Reserve rate hike in September. Futures for Japan, South Korea and Australia pointed higher after Fed Governor Christopher Waller said he would support keeping rates steady if price pressures continue to ease. The yen held its biggest gain in more than a month, oil rose and the dollar fell to its lowest level since May. Interest-rate swaps priced roughly even odds of a quarter-point September hike, down from about 70% earlier in the week. The two-year Treasury yield declined three basis points to 4.34%.

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