Asian Markets Rally on Easing Inflation Concerns

Asian markets opened higher on Monday, kicking off a week packed with key U.S. economic reports. The positive sentiment was fueled by easing inflation concerns, which have lowered the chances of another interest rate hike by the Federal Reserve.

Japan's Nikkei 225 surged 2.5% to 70,037.61, marking its first climb above 70,000 points in three months. Australia's S&P/ASX 200 gained 0.1%, while Hong Kong's Hang Seng held steady. Trading was halted in Shanghai and South Korea due to national holidays.

Investors showed strong interest in artificial intelligence-related stocks. In Japan, Tokyo Electron rose 5.5%, and SoftBank Group gained 3.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) also climbed 2.6%. Last week, U.S. stocks neared all-time highs after a favorable jobs report eased inflation worries. The S&P 500 rose 0.7%, the Dow Jones added 0.5%, and the Nasdaq gained 1.2%.

The U.S. government reported that employers added 29,000 jobs in September, fewer than expected and a slowdown from August. This data reduced the likelihood of a Fed rate hike, calming the bond market. The 10-year Treasury yield dropped below 5.17% before rebounding to 5.28%. In energy trading, U.S. crude fell 1.03% to $90.17 per barrel, while Brent crude declined 0.58% to $101.66.