Asian Stock Rally Fades Amid Fed Rate Outlook as Oil Declines
- Chances of a September hike in U.S. interest rates diminish
- International Energy Agency Sees Oil Glut Persisting in 2017
The Chinese and European Challenges Facing Investors
Asian stocks reversed gains amid the highest volatility in two months as investors assessed the outlook for U.S. monetary policy and crude oil retreated.
The MSCI Asia Pacific Index fell 0.1 percent to 137.51 as of 4:35 p.m. in Hong Kong, after earlier rising as much as 0.7 percent. Its 10-day volatility reached the highest since July 7. Singapore and Indonesia led equity losses as they resumed trading after a holiday. Oil futures sank more than 2 percent after the International Energy Agency said the glut will persist into late 2017. Asian shares had edged higher earlier amid signs China’s economy is rebounding and following dovish comments from Federal Reserve board member Lael Brainard.