Asian Markets Edge Higher as AI Demand and Saudi Oil Hopes Lift Shares

Share markets in Asia edged higher on Monday as AI's insatiable demand for data buoyed chipmakers, and oil prices eased after reports that Saudi Arabia could boost supplies.

The US dollar remained steady at 157 yen due to thin trade in Japan, which was on its Silver Week holiday. The Japanese Nikkei index was closed, but futures rose 0.5%, while South Korea's tech-heavy index gained 1.1%.

The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%, and S&P 500 and Nasdaq futures firmed up by 0.3% and 0.4%, respectively. Eurostoxx 50 and Dax futures also rose, but FTSE futures were flat.

Bond markets remained tense due to a recent sell-off, with US 2-year yields jumping 36 basis points in two weeks to 4.7604%. The Federal Reserve's hawkish guidance has led to a 56% chance of another rate hike in October and a move by year-end being considered a done deal.