Asian Stocks Gain Amid Calm, Eyes on Upcoming US and China Economic Data

Asian markets showed gains due to a Japanese holiday reducing volatility. Investors await key U.S. and Chinese economic data. The Federal Reserve is closely watching U.S. consumer prices. Barclays analysts suggest ongoing disinflation could trigger a September rate cut. Meanwhile, oil prices rose amid Middle East tensions.

Asian markets edged higher on Monday as a Japanese holiday reduced volatility. Investors brace for major U.S. and Chinese economic data for insights on global growth. Key U.S. consumer prices data, expected to rise by 0.2%, will be critical for the Federal Reserve's next move.

Barclays analysts suggest continued disinflation could boost the Fed's confidence for a September rate cut. July's strong retail sales data are indicative of economic resilience. The futures market shows a 49% chance of a 50-basis-point rate cut in September, down from 100% a week ago.

Oil prices increased on fears of Middle East conflict impacting supplies. Israeli Defense Minister Yoav Gallant discussed Iran's military posturing with U.S. Defense Secretary Lloyd Austin. Brent crude climbed 20 cents to $79.86 a barrel, while U.S. crude rose 34 cents to $77.18 per barrel.

(With inputs from agencies.)