Tech leads shares higher in Asia, oil eases

Asian share markets climbed on Monday, driven by a strong appetite for AI-related investments and easing oil prices, following rumors of potential Saudi oil supply increases. Market activity was light as Japan observed its Silver Week holiday through Wednesday, leaving the yen to strengthen against the dollar. The Nikkei futures index rose 0.5%, while South Korea's technology-focused index increased by 1.1%.

Global indices, including the MSCI Asia-Pacific index excluding Japan, also posted modest gains of 0.3%. S&P 500 futures climbed 0.3%, and Nasdaq futures rose 0.4%.

In Europe, EUROSTOXX 50 and DAX futures each rose 0.2%, while the FTSE stayed unchanged. Tensions in the bond market persisted after a sharp sell-off pushed US 2-year yields to a two-month high of 4.7604%. The Federal Reserve's hawkish stance and expectations of two more rate hikes in October and December this year have led analysts to maintain their prediction of only two further hikes. The Fed's tightening strategy, which is typically implemented at the beginning of a cycle, is highly likely to continue.