Markets Asia: Asian stock markets on the upswing - lower US interest rate concerns boost tech stocks

Easing concerns about imminent US interest rate hikes drove Asian stock markets higher on Monday. Japan's benchmark Nikkei index rose 2 percent to 66,928 points, while the broader Topix gained 0.44 percent to 4,093 points. South Korea's benchmark index also ended up 1.1 percent higher. The MSCI index of Asian stocks outside Japan rose 0.8 percent.

Weak US jobs data had previously dampened expectations of an imminent tightening of monetary policy by the US Federal Reserve. In Tokyo, technology and AI stocks benefited from the positive cues from US stock exchanges. "Gains in chip stocks supported the Nikkei," said Daisuke Hashizume, chief strategist at Daiwa Securities. "The driving force was the decline in bets on a US Federal Reserve rate hike."

TSMC with billion-dollar investment Among the biggest winners were chip suppliers Advantest, which rose 5.3 percent, and Tokyo Electron, which gained 3.4 percent. A Nikkei report also drew attention, according to which Sony and Taiwanese contract chipmaker TSMC want to invest around 1 trillion yen ($6.32 billion) in the joint production of microchips for image sensors.

Among the losers was battery materials maker Mitsui Kinzoku, whose shares plummeted 17 percent after disappointing figures. Bucking the regional trend, Chinese benchmark stocks fell 0.4 percent, as weaker-than-expected inflation data underscored the persistent slump in domestic demand. The gains in Asia were also capped by geopolitical tensions in the Middle East.

Uncertainty over a possible reopening of the Strait of Hormuz curbed risk appetite, as Iran demanded further concessions from the US for an agreement. In Japan, the central bank also made headlines: warnings from monetary authorities about rising inflation risks fueled speculation of a faster interest rate turn in September.