Asian equities advanced on Monday, driven by a sharp rally in technology shares as optimism around artificial-intelligence demand lifted chipmakers across the region. At the same time, stronger-than-expected U.S. jobs data and a renewed jump in oil prices kept investors cautious about the Federal Reserve's interest-rate path.

The gains followed a mixed session on Wall Street on Friday, when most U.S. stocks declined after August payrolls rose by 162,000, beating expectations and strengthening the case for a more hawkish Federal Reserve.

U.S. markets are closed Monday for the Labor Day holiday, while U.S. stock-index futures trade on a holiday schedule, making liquidity thinner. In Asian trade, Nasdaq 100 futures were up 0.3% and S&P 500 futures were little changed.

The jobs report was positive for the global-growth outlook but also reduced the Fed's room to ease policy, putting Friday's U.S. consumer price report in focus. That data could prove decisive for the September rate decision, while elevated Treasury yields continue to keep financial conditions tight. A hotter-than-expected reading would reinforce the case for holding rates higher for longer, a dynamic that has weighed on rate-sensitive assets across Asia this year.

Chipmakers Surge as AI Optimism Lifts Supply Chain

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% and Japan's Nikkei 225 rose 1.9%.

South Korea led the gains, with SK Hynix up 6.1% and Samsung Electronics up 4%. The rally followed strength in U.S. chip stocks after OpenAI unveiled GPT-6 Astra, reviving optimism around AI infrastructure demand. Both companies are major suppliers of high-bandwidth memory used in AI accelerators, a segment that has been one of the brightest spots in an otherwise uneven semiconductor market, and their shares have often moved in sympathy with signs of accelerating AI infrastructure spending.

In Japan, Kioxia jumped 7.6%, while TDK rose 2.5% and Murata Manufacturing gained 4.3%. Taiwan Semiconductor Manufacturing climbed 1.5%, LG Innotek added 4.5% and Luxshare Precision advanced 2.6%. Largan bucked the trend, falling 9.5%, while Sony slipped 2.6%.

Foxconn held steady despite saying third-quarter operations should outperform market expectations, helped by strong AI demand and peak-season information and communications technology sales. August revenue jumped 52% year-on-year to a record T$921.8 billion, its second straight month above T$900 billion.

Meanwhile, oil added to inflation concerns after the U.S. struck three Iranian oil tankers over the weekend, following Iranian attacks on U.S. Navy ships. Iran has threatened to establish a restricted zone outside the Strait of Hormuz, raising the risk of further disruption to energy flows. The strait is one of the world's most important oil chokepoints, handling roughly a fifth of globally traded petroleum, so any disruption there reverberates through global energy prices. Brent crude rose 0.2% to $96.45 a barrel and West Texas Intermediate crude gained 0.4% to $91.85.

China, India Markets Mixed as Policy Support Builds

China's CSI 300 rose 0.2%, while Hong Kong's Hang Seng fell 1.2%.

Chinese technology shares were mixed: Xiaomi fell 3.9%, Baidu 5.6%, JD.com 1.5%, Meituan 1.9% and Tencent 0.8%, while MiniMax rose 4.9% and some hardware names gained.

Beijing also unveiled a broader 360 billion yuan recapitalization of state-owned banks and insurers, including 300 billion yuan of special Treasury bonds, to bolster the financial system and support lending as growth slows. The move adds to a series of incremental support measures this year aimed at shoring up confidence in the world's second-largest economy.

India's Nifty 50 gained 0.1%, while GIFT Nifty futures indicated a modestly positive start after four straight weekly declines. Investors are also watching new pre-open session rules that bring the mechanism closer to the closing auction session, which has caused sharp swings around the Sensex close.

Elsewhere, the S&P/ASX 200 rose 0.11%, Singapore's Straits Times fell 0.2%, Thailand's SET rose 1.1%, the Philippines' PSEi fell 0.31%, Malaysia's KLCP gained 0.32%, New Zealand's NZX 50 fell 0.5% and Japan's TOPIX rose 0.6%.

Source: Investing.com, via Hellenic Shipping News