Nikkei 225 surged 0.89% on Monday, buoyed by expectations that the U.S. Federal Reserve may add a 25‑basis‑point hike before year‑end, according to Bloomberg.
South Korea's benchmark faced a 0.46% slide as trading resumed post‑holiday, while Japan's Topix edged up 0.48% and the Nikkei's 0.89% gain lifted the market overall. Hang Seng futures, however, stayed near flat, and India's GIFT Nifty signaled a muted start in the red.
The average yield on a global bond gauge climbed above 4% for the first time since 2007, a sign that borrowing costs are tightening. Fed officials, including Cleveland Fed President Beth Hammack, warned that resilient growth and a strong labour market could justify further tightening, while Treasury Secretary Scott Bessent urged policymakers to remain open to productivity gains.
The Bank of Japan may raise its benchmark rate for a second straight month at its October meeting, earlier than many economists forecast, according to Bloomberg. The yen weakened 0.3% to 157.70 per dollar after two board members voted against the hike, and the offshore yuan held steady at 6.7252 per dollar.
Oil prices kept the tail high, with Brent settling at $105.9 per barrel and West Texas Intermediate above $93, reinforcing inflationary pressures and the expectation of further rate hikes.
Investors now focus on the U.S. Fed’s October 5 policy meeting, where a 25‑basis‑point increase is still on the table. Meanwhile, the Indian market is expected to open near the 23,000 level as it seeks to break its seven‑week decline.