Asian Markets Rise as Tech Stocks Boosted by AI Demand

Asian markets edged higher on Monday as tech stocks rose due to AI's insatiable demand for data, while oil prices eased on reports of increased supply from the Middle East. Japan was closed for its Silver Week holiday, leaving investors wary that the Bank of Japan might intervene in support of the yen.

The Nikkei futures rose 0.5%, and South Korea's tech-heavy index gained 1.5%. The MSCI's broadest index of Asia-Pacific shares outside Japan increased by 0.8%, with Chinese blue chips up 0.6%.

In the US, hawkish guidance from the Federal Reserve last week has futures wagering on a 56% chance of another rate hike in October, with a move by year-end considered likely. Analysts at BofA wrote that tightening cycles are generally front-loaded, and the Fed almost never stops after one hike.

Talk of increased supply hit oil markets, with data from analytics firm Kpler showing exports from OPEC kingpin Saudi Arabia had recovered to over 4 million barrels per day in September. Admiral Brad Cooper said the volume of crude oil, cargo, and liquefied natural gas was higher than at any point in the past six months.