Asian Markets Rise on Easing Inflation Concerns

Asian markets showed gains Monday as investor concerns over inflation eased, reducing expectations for another interest rate hike by the U.S. Federal Reserve. Tokyo's Nikkei 225 led the charge with a 2.4% surge, briefly surpassing 70,000 points for the first time in three months. Other regional markets saw modest gains, with Hong Kong's Hang Seng up 0.3% and Britain's FTSE 100 rising 0.5%. However, Europe's performance was mixed, with France's CAC 40 dropping 1.1% and Germany's DAX nearly flat.

Investor interest in artificial intelligence-related stocks boosted shares of companies like Tokyo Electron, which rose 5.5%, and SoftBank Group, up 3%. Taiwan Semiconductor Manufacturing Co. (TSMC) also climbed 3%. Meanwhile, U.S. futures for the S&P 500 and Dow Jones Industrial Average dipped slightly by 0.1%.

This week will see key U.S. economic reports, including data on the services sector, unemployment, and consumer sentiment. Last week's jobs report showed slower hiring, easing inflation worries and lowering the likelihood of further Fed rate hikes. The Fed had recently raised rates to combat rising living costs.

Energy markets saw declines, with U.S. crude falling 1.7% to $89.57 a barrel and Brent crude dropping 1.3% to $100.95. Oil prices have been volatile due to uncertainty over the war with Iran's impact on global supply. In currency trading, the U.S. dollar weakened against the yen, slipping to 157.71 yen from 157.83 yen.