Asian Markets Rise on Easing Inflation Concerns and Fed Rate Hike Uncertainty

Asian markets opened higher on Monday, boosted by easing inflation concerns that have lowered the chances of another Federal Reserve interest rate hike. Japan's Nikkei 225 surged 2.5% to 70,037.61, marking its first climb above 70,000 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.

Shares tied to artificial intelligence saw strong demand. Tokyo Electron and SoftBank Group each gained 5.5% and 3.3%, respectively, while Taiwan Semiconductor Manufacturing Co. (TSMC) climbed 2.6%. Last week, U.S. stocks neared record highs after a positive jobs report eased inflation fears. The S&P 500 rose 0.7%, the Dow Jones Industrial Average added 0.5%, and the Nasdaq composite gained 1.2%. The U.S. government reported that employers added 29,000 jobs in September, a slowdown from August's 133,000.

The reduced job growth lowered expectations for an October Fed rate hike, calming the bond market. The 10-year Treasury yield briefly dipped below 5.17% before rebounding to 5.28%. In energy trading, U.S. crude fell 1.03% to $90.17 a barrel, and Brent crude dropped 0.58% to $101.66. Oil prices have fluctuated due to uncertainty over the impact of the war with Iran on global supply. The U.S. dollar rose to 157.97 yen, while the euro fell to $1.1179.