• The dollar inched higher and Asian stocks showed modest increases Monday as investors weighed the diminishing prospect of any significant stimulus from China against positive signs from the US.
• The small gains in the dollar against its major counterparts reflected in part caution over risk taking after China’s lower-than-expected economic growth target. The region’s equity markets ran with the upbeat lead from Wall Street on Friday, when shares ended the week on a high note, driven by speculation that the Federal Reserve won’t raise interest rates beyond peak levels already priced in.