Japan stocks gain, Asian shares rise as Fed hike bets ease, oil gains

Asian stocks climbed as expectations of a slower pace of US Federal Reserve interest rate hikes eased following softer-than-expected US jobs data. MSCI's Asia Pacific equities index increased 0.4%, with Japanese shares surging 2%. Among other moves, S&P 500 futures climbed 0.1%, while Hang Seng fell 0.2%. Japan's Topix and Australia's S&P/ASX 200 rose 0.9% and 0.6% respectively. The Nasdaq 100's contracts rose 0.3% after closing at a record high on Friday, and semiconductor shares in a US index also rallied.

Brent crude prices rose as Yemen attempted to regain control of Houthi-held areas. Gold remained stable after its biggest weekly drop since June, with higher bond yields offsetting expectations of a Fed rate hold. Despite the underwhelming jobs report, the Fed is not expected to rush into another rate hike in October. The US non-farm payrolls rose 29,000 in September, below estimates, and the unemployment rate increased to 4.2%.

The bond market continues to face a prolonged decline amid concerns about inflation, government spending, and rising corporate borrowing for AI development. The Fed will release minutes of its September meeting on Wednesday, which may shed light on their concerns about underlying price trends and expectations.