Asian Markets Rise on Easing Inflation Fears

Asian markets showed gains on Monday as concerns over inflation eased, reducing the likelihood of further rate hikes by the Federal Reserve. Investors welcomed the shift, with Japan's Nikkei 225 surging 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 steady at 23,971.55. Trading was halted in Shanghai and South Korea due to national holidays.

Shares linked to artificial intelligence, such as Tokyo Electron and SoftBank Group, saw notable gains. Tokyo Electron climbed 5.5%, and SoftBank Group advanced 3.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) also rose 2.6%. The positive momentum followed a strong week for U.S. stocks, with the S&P 500, Dow Jones, and Nasdaq all posting gains as inflation worries subsided.

Last week's U.S. job market data revealed a slower pace of hiring, with employers adding 29,000 jobs, less than expected. This fueled expectations that the Federal Reserve would hold off on raising interest rates, calming bond markets. The 10-year Treasury yield dipped below 5.17% before rebounding to 5.28%. In energy trading, U.S. crude fell 1.03% to $90.17 per barrel, and Brent crude dropped 0.58% to $101.66.

In currency markets, the U.S. dollar strengthened against the Japanese yen, reaching 157.97 yen. The euro weakened to $1.1179. The overall market sentiment reflected a more optimistic outlook as inflation fears receded, supporting risk assets across the region.