Asian Markets Rally Amid Oil Price Surge, US Inflation Data Looms

The Asian equity markets experienced mixed results on Monday as Tokyo's technology sector led Japan's benchmark to significant gains. The Nikkei 225 surged 2% to 66,890.02, with semiconductor-related stocks driving the rally. This was largely attributed to a positive sentiment spillover from Wall Street, where major indices achieved their second consecutive week of advances and multiple record highs.

However, not all markets followed suit. In Seoul, the Kospi added only 0.8% to 6,305.86, restrained by profit-taking in heavyweight technology shares. Samsung Electronics slipped 0.9%, while memory chip rival SK Hynix lost 1.3%. Analysts suggested that foreign investors were rotating out of Big Tech names to lock in profits from recent gains.

The US inflation data is now the focus, with economists forecasting a slight easing from 3.5% in June to 3.4% in July. The Federal Reserve's next policy moves will likely be influenced by this report.