Asian Markets Rise as Inflation Fears Ease Rate Hike Concerns
Asian markets kicked off the week on a strong note as investor concerns over inflation eased, lowering the likelihood of another Federal Reserve rate hike. Japan's Nikkei 225 surged 2.5% to 70,037.61, marking its first breach above 70,000 points in three months. Meanwhile, Australia's S&P/ASX 200 gained 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 particular interest in artificial intelligence-related stocks. In Japan, Tokyo Electron rose 5.5%, and SoftBank Group climbed 3.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) also saw a 2.6% increase. The positive sentiment followed a strong close for US stocks last week, fueled by a favorable jobs report that eased inflation worries.
The S&P 500 added 0.7%, nearing its August record, while the Dow Jones Industrial Average gained 0.5% and the Nasdaq composite rose 1.2%. The US jobs report showed a slower hiring pace than expected, reducing the chances of a Fed rate hike. This shift calmed the bond market, with the 10-year Treasury yield briefly dropping below 5.17% before rebounding to 5.28%.
In energy trading, US crude fell 1.03% to USD 90.17 a barrel, and Brent crude declined 0.58% to USD 101.66. Oil prices have been volatile amid uncertainty over the impact of the war with Iran. In currency markets, the US dollar rose to 157.97 Japanese yen, while the euro dipped to USD 1.1179.