Asian Markets Rise on Easing Inflation Fears

Asian markets opened higher on Monday, buoyed by easing inflation concerns that have lowered expectations for another Federal Reserve rate hike. Japan's Nikkei 225 surged 2.5% to 70,037.61, marking its first push above 70,000 points in three months. Australia's S&P/ASX 200 climbed 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. Tokyo Electron rose 5.5%, SoftBank Group gained 3.3%, and Taiwan Semiconductor Manufacturing Company (TSMC) advanced 2.6%. Last week, U.S. stocks neared all-time highs after a positive jobs report eased inflation fears. The S&P 500 rose 0.7%, the Dow Jones gained 0.5%, and the Nasdaq climbed 1.2%.

The U.S. reported that employers added 29,000 jobs in September, fewer than expected, suggesting the Federal Reserve may hold off on further rate hikes. This helped calm bond markets, with the 10-year Treasury yield briefly dipping below 5.17% before rebounding to 5.28%. U.S. crude oil fell 1.03% to $90.17 per barrel, while Brent crude dropped 0.58% to $101.66.

In currency trading, the U.S. dollar strengthened to 157.97 yen, and the euro slipped to $1.1179. Oil prices remain volatile amid uncertainty over the war with Iran's impact on global supply.