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Asia Rallies on Tech Demand, Oil Prices Ease Amid Saudi Hopes

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Asian share markets edged higher on Monday as AI's insatiable demand for data buoyed chipmakers, while oil prices eased on hopes Saudi Arabia could boost supplies.

The Nikkei futures rose 0.5%, and South Korea's tech-heavy index gained 1.1%. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%.

US Treasury yields jumped 36 basis points in the past two weeks to heights not seen since mid-2024 at 4.7604%, as hawkish guidance from the Federal Reserve last week increased speculation about future rate hikes.

Bond markets remained tense, with central banks in the EU, UK, Japan, Australia, and New Zealand expected to tighten again by year's end.

The euro was flat at $1.1477, having shed almost 1% last week as the dollar gained broadly.

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