TOKYO – Asian markets moved higher Monday as investors prepared for a packed week of U.S. economic data and updates.
Markets have found some relief in signs that inflation pressures may be moderating, reducing expectations that the Federal Reserve will deliver another interest-rate increase.
Japan’s Nikkei 225 led gains, rising 2.5% to 70,037.61 in morning trading. The index climbed above the 70,000 mark for the first time in three months.
Australia’s S&P/ASX 200 added 0.1% to 8,691.90, while Hong Kong’s Hang Seng was little changed at 23,971.55.
Markets in Shanghai and South Korea remained closed for national holidays.
Technology and artificial intelligence-related stocks attracted strong buying interest. Tokyo Electron surged 5.5% in Japan, while shares of SoftBank Group, a major technology investor, rose 3.3%.
Taiwan Semiconductor Manufacturing Co., widely known as TSMC, advanced 2.6%.
U.S. stocks ended last week close to record territory after fresh labor-market data eased investor concerns that persistent inflation could lead to higher interest rates.
The S&P 500 gained 0.7%, finishing within 1% of its August record. The Dow Jones Industrial Average rose 0.5%, while the Nasdaq composite climbed 1.2%.
According to the U.S. government, employers added a net 29,000 jobs last month. The increase fell short of economists’ forecasts and marked a sharp slowdown from August’s net gain of 133,000 positions.
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Investors interpreted the weaker hiring figures as reducing the chances of another Federal Reserve rate increase. The central bank recently lifted its main interest rate for the first time in three years as it sought to curb painful increases in the cost of living.
Expectations for an October rate hike have since receded, helping ease pressure in the bond market.
The yield on the 10-year U.S. Treasury briefly fell below 5.17%, down from Thursday’s high of about 5.35%. Yields on other longer-dated government bonds also approached levels not seen in two decades.
The 10-year Treasury yield later recovered to 5.28%, more than 0.10 percentage points above its session low. The rebound in yields also trimmed gains in U.S. equities.
In energy markets, U.S. benchmark crude fell 1.03% to $90.17 a barrel. Brent crude, the global benchmark, slipped 0.58% to $101.66.
Oil prices have swung sharply in recent sessions as traders assess how the war with Iran could affect the global petroleum industry.
In Asian currency trading Monday, the U.S. dollar strengthened to 157.97 Japanese yen from 157.83 yen. The euro fell to $1.1179 from $1.1257.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
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