Global Markets Rise on Easing Inflation Concerns

Global stock markets kicked off the week on a positive note, with Tokyo's Nikkei 225 index leading the charge with a 2.4% gain. Investors were buoyed by easing inflation concerns, which have lowered expectations for another interest rate hike by the Federal Reserve. However, gains were modest elsewhere, as markets awaited key U.S. economic updates later in the week.

European markets showed mixed results, with France's CAC 40 dropping 1.1% and Germany's DAX remaining nearly flat. Meanwhile, Britain's FTSE 100 climbed 0.5%. In Asia, Japan's Nikkei 225 briefly surpassed 70,000 points for the first time in three months, while Australia's S&P/ASX 200 and Hong Kong's Hang Seng saw modest gains. Trading was closed in Shanghai and South Korea for national holidays.

Shares related to artificial intelligence attracted attention, with Tokyo Electron surging 5.5%, SoftBank Group rising 3%, and Taiwan Semiconductor Manufacturing Co. (TSMC) climbing 3%. This week, investors will focus on U.S. data releases on the services sector, unemployment, and consumer sentiment.

In energy trading, U.S. crude oil fell 1.7% to $89.57 a barrel, while Brent crude declined 1.3% to $100.95 a barrel. Oil prices have fluctuated recently due to uncertainty surrounding the war with Iran and its impact on global oil markets. The U.S. dollar weakened slightly against the Japanese yen and the euro.