Asian shares pause, gold buoyed amid rising rate cut speculations

Investing.com - Asian stocks took a pause on Monday after global equities experienced their best week in nine months, driven by optimism that the US economy will avoid a recession and cooling inflation will trigger a cycle of interest rate cuts.

Currently, the expectation of a softer-than-soft landing for the US economy has S&P 500 futures and Nasdaq 100 Futures up by 0.2% apiece, building on last week's gains.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.2%, after rallying 2.8% last week. Japan's Nikkei slipped 0.4%, following a nearly 9% surge last week.

The prospect of lower borrowing costs also pushed gold prices above $2,500 an ounce for the first time, while the dollar slipped against the euro. However, both the safe-haven yen and Swiss franc weakened as risk appetite recovered.

Over the weekend, Federal Reserve members Mary Daly and Austan Goolsbee hinted at the possibility of easing monetary policy in September. Minutes from the last policy meeting, due for release this week, are expected to reinforce this dovish outlook.

Fed Chair Jerome Powell is scheduled to speak in Jackson Hole on Friday, where investors anticipate he will acknowledge the potential for a rate cut.

The Federal Reserve is not alone in considering looser policy; Sweden's central bank is expected to cut rates this week, possibly by a substantial 50 basis points.

In currency markets, the euro remained steady at $1.1025, just below last week's high of $1.1047. The dollar stood at 147.79 yen, having been as high as 149.40 yen last week.

A weaker dollar, combined with lower bond yields, helped gold hold steady at $2,506 an ounce, near its all-time peak of $2,509.69.

Oil prices dipped again due to ongoing concerns about Chinese demand weighing on market sentiment. Brent crude fell 29 cents to $79.39 a barrel, while WTI crude decreased by 27 cents to $76.38 per barrel.