Stocks Rise As Rate Hopes Cool Ahead Of Key CPI Print

Asian stock markets edged higher at the start of the week following a strong close on Wall Street. The recent market momentum comes as traders dial back expectations for a Federal Reserve rate hike in September. Futures markets currently price the chance of a September rate increase at about 44 percent, which is down significantly from 67 percent just a week ago following a softer jobs report.

All eyes are now turning to Wednesday's consumer price index release for July. Economists expect headline inflation to rise by 0.1 percent, with core inflation projected at 0.2 percent. While these moderate forecasts might keep the central bank on hold for now, analysts warn that stronger figures could quickly revive fears of tighter monetary policy and stall current market rallies.

Oil prices are adding an extra layer of uncertainty to the inflation outlook. Brent crude climbed to $84.32 a barrel after shipping disruptions continued near the Strait of Hormuz. Sustained pressure on energy prices could easily push headline inflation higher and test the resilience of both traditional equities and digital assets.

Crypto traders should watch the upcoming inflation data closely, as digital assets often react swiftly to shifts in global liquidity and interest rate expectations. A cooler inflation print could support risk assets, while a hot reading may trigger renewed volatility across the board.