Tech Stocks Rally Amid Inflation Fears

Technology stocks rallied across Asia on Monday as investors awaited key US inflation data this week that could trigger a September interest rate hike from the Federal Reserve. Despite a stronger-than-expected reading on US jobs last Friday, which boosted bets of an interest rate rise, tech firms made significant gains in Seoul and Tokyo.

The share prices of South Korea's Samsung and SK hynix jumped 5.7% and 8.3%, respectively, while SoftBank soared more than 11%. On broader markets, Seoul ended more than four percent higher and Tokyo added more than two percent.

Analyst Dan Coatsworth noted that 'many of the headlines from the dominant AI theme remain positive,' but investors are cautious about an interest rate hike at the US Federal Reserve's meeting later this month. The market is looking ahead to earnings from tech titan Oracle on Thursday, which will provide a fresh idea about the outlook for the AI boom.

Meanwhile, oil prices rose due to a fresh bout of US-Iran strikes over the weekend, pushing up inflation expectations and adding upward pressure to fuel costs. Average diesel prices in the United States reached a new record on Monday, according to motorists' association AAA.