Asia shares rise on accommodative Fed, China stocks narrow losses on strong GDP

SINGAPORE (Reuters) - Asian stocks mostly rose on Monday, spurred by record high closes for the Dow and S&P 500 on bets that the Federal Reserve's policy will remain accommodative following lacklustre U.S. data, which sent the dollar reeling to a 10-month low. Chinese stocks fell over 2 percent in early trade but recouped some of the losses after data showed the economy grew at a slightly faster than expected pace of 6.9 percent in the second quarter thanks to robust industrial output and retail sales. The CSI 300 was 0.7 percent lower, and the Shanghai Composite was down 1.1 percent. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent on Monday. Japanese markets were closed for a holiday. Nifty Trading Tips

Australian shares were 0.3 percent lower, while South Korea's KOSPI jumped 0.3 percent. Wall Street closed higher on Friday, after data showed consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and subdued expectations of strong economic growth in the second quarter. The chances of a rate hike in December fell to 43.1 percent after the data came out from 55 percent late Thursday, according to the CME Group's Fedwatch tool. The dollar index, which tracks the greenback against a basket of trade-weighted peers, hit a 10-month low early on Monday. It was trading flat at 95.156 after losing 0.6 percent on Friday. Future & Option Trading Tips