In Asian Equity Markets stocks rose on Monday while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July. The Memorial Day holiday in the United States could make for a thin session ahead of the end of the month, but MSCI’s broadest index of Asia-Pacific shares outside Japan still climbed 1.2 percent to a three-week high. Japan’s Nikkei added 2.0 percent and South Korea rose 1.2 percent. Chinese blue chips firmed 0.8 percent.

In Currency Markets the dollar nursed last week’s losses on Monday and was headed for its first monthly decrease in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little. The dollar was a fraction weaker on the euro at $1.0728, just above a five-week low. The risk-sensitive Australian and New Zealand dollars were firm after a Friday rally, while the yen was a fraction weaker at 127.28 per dollar. The Aussie hovered near a three-week high at $0.7161, as did the kiwi at $0.6536.

In US Equity Markets stocks closed sharply higher on Friday as signs of peaking inflation and consumer resiliency sent investors into the long holiday weekend with growing optimism that the Fed will be able to tighten monetary policy without tipping the economy into recession. The Dow rose 1.76 percent, to 33,212.96, the S&P 500 gained 2.47 percent, to 4,158.24 and the Nasdaq Composite added 3.33 percent, to 12,131.13. Apparel retailers Gap Inc and American Eagle Outfitters trimmed their annual profit forecasts. The latter fell 6.6 percent, while the former rebounded and ended up 4.3 percent.

In Commodities Markets oil prices rose on Friday, closing out the week with gains ahead of the U.S. Memorial Day holiday weekend, the start of peak U.S. demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil. Brent crude rose 1.7 percent, to settle at $119.43. U.S. West Texas Intermediate (WTI) crude rose 0.9 percent, to settle at $115.07 a barrel. Spot gold rose 0.5 percent to $1,858.97 per ounce. Spot silver climbed 1.5 percent to $22.33 per ounce. Platinum rose 0.2 percent to $951.66. Palladium was 0.9 percent higher at $2,032.09.

In European Equity Markets stocks marked their best week since mid-March, ending Friday on a strong note as upbeat U.S. data and easing bets about aggressive interest rate hikes lifted sentiment. The pan-European STOXX 600 index rose for a third straight session, closing up 1.5 percent, taking weekly gains to 3 percent. Germany’s DAX ended at an over one-month high, up 1.6 percent. London’s blue-chip FTSE 100 underperformed on Friday as energy stocks tracked oil prices lower, and as utilities worried about a potential windfall tax.

In Bond Markets U.S. Treasury yields ended near six-week lows on Friday as concerns about growth and signs that inflation may have peaked led investors to speculate that the Federal Reserve may not raise rates as much as previously expected. Benchmark 10-year note yields fell two basis points to 2.743 percent. They are holding just above a six-week low of 2.706 percent reached on Thursday and are down from 3.203 percent on May 9. The yield curve between two-year and 10-year notes flattened one basis point to 26 basis points.