Asian Markets Rally on Easing Inflation Fears and Fed Rate Hike Uncertainty

Asian stock markets opened higher on Monday, September 15, 2026, as concerns about inflation eased, lowering 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 breach above 70,000 points in three months. Australia's S&P/ASX 200 rose 0.1% to 8,691.90, while Hong Kong's Hang Seng remained flat at 23,971.55. Trading was halted in Shanghai and South Korea due to national holidays.

Investors showed strong interest in artificial intelligence-related shares. In Japan, Tokyo Electron climbed 5.5%, and SoftBank Group's shares gained 3.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) also saw a 2.6% increase. The positive sentiment followed the latest U.S. job market report, which showed employers added 29,000 more jobs than expected, easing inflation worries.

The S&P 500 rose 0.7% last week, nearing its record high from August. The Dow Jones Industrial Average added 0.5%, and the Nasdaq composite gained 1.2%. The reduced likelihood of a Fed rate hike calmed the bond market, with the 10-year Treasury yield briefly dropping below 5.17% before bouncing back to 5.28%.

In energy trading, U.S. crude oil fell 1.03% to $90.17 a barrel, while Brent crude declined 0.58% to $101.66. Oil prices have been volatile due to uncertainty surrounding the war with Iran. In currency trading, the U.S. dollar rose to 157.97 Japanese yen, and the euro decreased to $1.1179.