Asian stocks rise ahead of China data, Fed speakers. Asian markets rose gingerly on Monday as investors awaited China’s industrial and retail statistics and a host of U.S. Federal Reserve officials to confirm market pricing of rate cuts this year.

European markets will open with Euro Stoxx 50 futures up 0.2%, reflecting cautious optimism. S&P 500 and Nasdaq futures flat.

In emerging markets, the Turkish lira hit a two-month low after Saturday elections looked destined for a runoff. At the same time, the Thai baht rose about 1% after Thailand’s opposition defeated military-allied parties.

After a severe sell-off the week before, Chinese and Hong Kong shares rebounded Monday, lifting MSCI’s broadest Asian-Pacific shares outside Japan (.MIAPJ0000PUS) by 0.5%.

Hong Kong’s Hang Seng index (.HSI) climbed 1.2%, and China’s blue chips 0.6%. Last week’s results season optimism lifted Japan’s Nikkei (.N225) 0.7%.

China’s central bank held medium-term policy loan rates constant on Monday, despite growing predictions that monetary policy easing may be needed to boost economic recovery.

On Monday, Hong Kong Exchanges & Clearing Ltd. (HKEX) added onshore interest rate derivatives to its Connect scheme to allow offshore investors in Chinese bonds to hedge their exposure.

On Tuesday, China reported monthly industrial production, retail sales, and fixed asset investment.

“A big year-on-year improvement shouldn’t surprise given it is measured against a stagnant economy that was in lockdown,” said Pepperstone research head Chris Weston.

“However, with China’s data throwing up a few concerns of late – we’ve seen poor import, PPI, and loan data – China’s growth is very much at the heart of market moves,” added Weston.

This week, several Federal Reserve officials, including Chair Jerome Powell, are speaking on Friday, which could generate headlines to alter the dial.

After a report on Friday showed U.S. long-term inflation expectations rose to the most since 2011, lifting the currency and Treasury yields, traders now expect the Fed to hold rates at 17.7%, up from 8.5% a week earlier.

After CPI and PPI data backed Fed pausing due to decreasing inflation, bets are still on three quarter-point cuts by year-end.

Fed Governor Michelle Bowman indicated Friday that the U.S. central bank would likely hike interest rates if inflation remains high.

“While we think the directional bias is right, i.e. a cut is the next move rather than a hike, it now may take softening in global growth or sharply weaker growth in order to even meet current market pricing, or fuel further dovish repricing,” said NatWest Markets global head of economics John Briggs.

On Monday, growth concerns, U.S. debt ceiling issues, and banking worries sent the safe-haven dollar to five-week highs against major peers, extending its largest weekly climb since September.

Last week, it rose 1.4% to 102.64.

Talks to raise the debt limit and prevent a catastrophic default are progressing and U.S. President Joe Biden intends to meet with Congressional leaders on Tuesday.

Investors avoid payments due when the Treasury is at risk of running out of funds and rush into alternative issues due to concerns about Congress not lifting the debt ceiling on time.

After climbing six basis points on Friday, 10-year rates were unchanged at 3.4775%, and two-year yields were unchanged at 4.004% after rising ten basis points.

Oil prices fell again. Brent and U.S. crude futures lost 0.6% to $73.68 and $69.61 a barrel, respectively.

Last week, it rose 1.4% to 102.64.

Talks to raise the debt limit and prevent a catastrophic default are progressing and U.S. President Joe Biden intends to meet with Congressional leaders on Tuesday.

Investors avoid payments due when the Treasury is at risk of running out of funds and rush into alternative issues due to concerns about Congress not lifting the debt ceiling on time.

After climbing six basis points on Friday, 10-year rates were unchanged at 3.4775%, and two-year yields were unchanged at 4.004% after rising ten basis points.

Oil prices fell again. Brent and U.S. crude futures lost 0.6% to $73.68 and $69.61 a barrel, respectively.