Asian Markets Rise as Tech Stocks Benefit from AI Demand

Asian share markets rose on Monday, led by tech stocks and chipmakers benefiting from AI's insatiable demand for data. The Nikkei was shut due to Japan's Silver Week holiday but futures rose 0.2%. South Korea's tech-heavy index gained 1.4%, while Taiwan rose 1% to a three-month high.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.9%, and Chinese blue chips gained 0.2%. The US dollar remained flat at 157.00 yen, as investors were wary in case the Bank of Japan took advantage of thin trade to intervene in support of its currency.

The Federal Reserve's hawkish guidance last week has futures wagering on a 56% chance it will hike rates again in October, with a move by year-end considered a done deal. Tightening cycles are generally front-loaded, and the Fed almost never stops after one hike, analysts at BofA noted.

The rise of interest rates hampered non-interest-paying gold, which fell 0.5% to $4,355 an ounce. Oil prices also eased, with Brent falling 1.7% to $102.08 a barrel, and US crude dropping 1.8% to $98.53.