Asian markets began the final quarter on a muted note, while bond markets remained central to investor attention as yields stayed near multi-year highs. A slower-than-expected increase in U.S. inflation in August, combined with a downward revision to July's reading, reduced some expectations for a Federal Reserve rate hike this month but failed to push down Treasury yields, which reached new overnight peaks and remained near them in Asian trading. Stalled peace talks between the United States and Iran over ending the seven-month-long war in the Middle East added to concerns about the global inflation outlook. Euro zone inflation pressures also intensified, with prices rising faster than expected in several major economies last month. Micron Technology's stronger-than-expected quarterly revenue forecast and increased customer commitments under long-term supply agreements, worth $32 billion, did not revive sentiment in Asia. Trading was lighter because Hong Kong and China were closed for a holiday. Japan's quarterly Bank of Japan Tankan survey showed business confidence reached an eight-year high in July-September, while elevated inflation expectations strengthened the case for rate increases. A summary of opinions from the BOJ's September meeting showed some policymakers favored faster tightening or moving rates toward the central bank's desired level sooner. Markets were also set to assess September house prices in the UK, September manufacturing PMI readings from France and Germany, and the euro zone's August unemployment rate.