Baltic Dry Index climbs to 2854 up 49 points

The Hang Seng Index climbed 0.59 percent to 24,625 on Monday, while other Asian markets also showed positive signs after a tumultuous week marked by concerns over chip demand. In Hong Kong, the China enterprises index rose 0.62 percent to 8,325, and the tech index increased 1.02 percent to 4,119. The Shanghai Composite Index opened 0.27 percent higher at 3,659.

The Shenzhen Component Index added 0.87 percent to 11,273, and the ChiNext Index gained 1.19 percent to 2,494. Tokyo's Nikkei Index opened 0.92 percent higher at 57,960, and the 225 benchmark topped 1,946 points by midday. Seoul's Kospi Index was the outlier, falling 0.5 percent to 5,034 before recovering slightly. Analysts remain cautious, as earnings reports from major tech firms like CoreWeave, Applied Materials, and Cisco Systems are anticipated to test the profitability of AI investments amid the high costs of expansion.

Recent earnings season and midterm elections have heightened regulatory risks, and the overall outlook remains bearish. Additionally, crude oil prices fell to US$97.49 per barrel after Trump expressed reluctance to launch fresh attacks on Iran, provided negotiations to end the conflict progress. A strong US jobs report, with over 165,000 jobs added in July, supports the case for a potential interest rate hike by the Federal Reserve in December, increasing the likelihood of a rate increase to nearly 80 percent.

A forthcoming US CPI reading on Tuesday may further reinforce expectations for a rate increase. Federal Reserve officials' comments also bolstered the notion of a December rate hike, contributing to the greenback's largest single-day gain in five months.