Fed Outlook Trumps Moody's Downgrade as Stocks Gain and Bonds Remain Calm

Asian stocks rose on Monday, following Wall Street's Friday rally, as investors shrugged off a Moody's downgrade to the U.S. credit outlook. Tech stocks stood out, benefiting from the calming of long-term Treasury yields, which boosted the outlook for borrowing-dependent growth shares. U.S. 10-year Treasury yields remained stable, while the U.S. dollar index traded little changed. Japan's Nikkei and Taiwan's tech-heavy equity benchmark rallied, while mainland Chinese blue chips were slightly lower and Australia's resource-heavy benchmark slipped. Despite the Moody's downgrade, the market focused on upcoming economic data, with U.S. consumer prices and retail sales readings due this week. Crude oil prices eased due to demand concerns outweighing supply concerns.