Asian stocks moved higher on Monday, led by a strong rebound in semiconductor shares as renewed optimism around artificial intelligence boosted technology stocks.
At the same time, higher oil prices and stronger-than-expected U.S. employment data kept concerns about interest rates and inflation firmly in focus.
Asian Stocks Rise After Mixed Wall Street Session
The gains followed a mixed session on Wall Street on Friday.
Most U.S. stocks ended lower after August payrolls increased by 162,000, beating expectations and strengthening the case for a more hawkish Federal Reserve.
U.S. markets were closed on Monday for the Labor Day holiday, while stock-index futures traded on a reduced holiday schedule.
In Asian trading, Nasdaq 100 futures and S&P 500 futures were little changed.
U.S. Jobs Data Keeps Fed Rate Risks in Focus
The strong jobs report supported confidence in the global economy.
However, it also reduced the Federal Reserve’s flexibility to ease monetary policy.
Investors are now turning their attention to Friday’s U.S. consumer price inflation report.
The data could play a major role in shaping expectations for the Federal Reserve’s September policy decision.
Elevated Treasury yields also continue to keep financial conditions relatively tight.
Chipmakers Lead Asian Stock Rally
Technology and semiconductor shares were among the strongest performers across the region.
The MSCI Asia Pacific Index rose 1.1%, while the broader index excluding Japan gained about 0.9%.
South Korea’s KOSPI jumped 3.4%, while Japan’s Nikkei 225 advanced around 1.9%.
The rally was driven largely by renewed confidence in artificial intelligence demand.
SK Hynix and Samsung Electronics Surge
South Korea led the regional gains.
SK Hynix rose 6.1%, while Samsung Electronics gained approximately 4%.
The move followed strength in U.S. semiconductor stocks after OpenAI unveiled GPT-6 Astra, renewing expectations for stronger AI infrastructure spending.
Several other Asian technology companies also advanced.
Japan’s Kioxia jumped 7.6%, TDK rose 2.5%, and Murata Manufacturing climbed 4.3%.
Taiwan Semiconductor Manufacturing gained 1.5%, LG Innotek advanced 4.5%, and Luxshare Precision rose 2.6%.
However, not all technology stocks participated in the rally.
Largan fell 9.5%, while Sony declined 2.6%.
Foxconn Reports Record August Revenue
Foxconn shares were little changed despite the company issuing a positive outlook.
The electronics manufacturer said third-quarter operations should outperform market expectations, supported by strong artificial intelligence demand and seasonal technology sales.
August revenue surged 52% year-on-year to a record T$921.8 billion.
It was the second consecutive month in which revenue exceeded T$900 billion.
Oil Prices Add to Inflation Concerns
Higher oil prices remained another important risk for global markets.
The United States struck three Iranian oil tankers over the weekend after attacks involving U.S. Navy ships.
Iran has also threatened to establish a restricted zone near the Strait of Hormuz, increasing concerns about possible disruption to global energy shipments.
Brent crude rose to around $96.45 per barrel, while West Texas Intermediate crude traded near $91.85.
Higher energy prices could keep inflation elevated and make central banks more cautious about easing monetary policy.
China Stocks Mixed as Beijing Boosts Financial Support
Chinese markets delivered a mixed performance.
The CSI 300 rose around 0.2%, while Hong Kong’s Hang Seng Index fell approximately 1.2%.
Major Chinese technology shares were also mixed.
Xiaomi, Baidu, JD.com, Meituan and Tencent moved lower, while MiniMax and several hardware-related companies advanced.
China Unveils Major Bank Recapitalization Plan
Beijing also announced a broader 360 billion yuan recapitalization plan for state-owned banks and insurers.
The package includes 300 billion yuan in special Treasury bonds.
The measure is designed to strengthen China’s financial system and support lending as economic growth slows.
The move could give major financial institutions more capacity to provide credit to businesses and households.
India Markets Edge Higher
India’s Nifty 50 gained about 0.1%, while GIFT Nifty futures pointed to a modestly positive opening.
The move came after four consecutive weeks of declines.
Investors are also monitoring new pre-open trading rules that bring the process closer to the closing auction mechanism.
The changes have contributed to sharper swings around the Sensex closing period.
Broader Asian Markets Trade Mixed
Elsewhere in the region, Australia’s S&P/ASX 200 edged up 0.11%.
Thailand’s SET Index gained around 1.1%, while Malaysia’s KLCI rose 0.32%.
Singapore’s Straits Times Index fell 0.2%, the Philippines’ PSEi dropped 0.31%, and New Zealand’s NZX 50 declined 0.5%.
Japan’s TOPIX added approximately 0.6%.
Overall, the Asian stock market rally was driven mainly by semiconductor and artificial intelligence optimism.
However, investors remain cautious as rising oil prices, high Treasury yields and shifting Federal Reserve expectations continue to create risks for global markets.
