Asian stocks were subdued and global bonds remained under pressure after a difficult September, as softer-than-expected US inflation reduced expectations for a Federal Reserve rate hike on October 28. Traders priced a 38% chance of an October increase, down from 50% a day earlier, according to CME’s FedWatch tool. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2%, while South Korea’s KOSPI slipped 0.14%; Japan’s Nikkei rose more than 1% as chip-related shares gained. Nasdaq and S&P 500 futures rose 0.3%, while European stock futures fell 0.75%. Strong earnings from AI chipmaker Micron did not improve the regional mood, with investors questioning how long the memory shortage can persist even as demand exceeds supply. US Treasury yields had surged in September as energy costs fueled inflation concerns and the AI boom supported economic growth. The 10-year Treasury yield reached 5.306%, its highest since mid-June 2007, while the 30-year yield stood at 5.634% after reaching 5.6517% in the previous session, its highest since June 2002. The dollar held near a two-month high, while the euro was steady at $1.1334 and the yen weakened 0.3% to 157.95 per dollar. Brent crude was at $98.15 a barrel after rising more than 14% in September, extending its gains to a third consecutive month. Investors were also assessing stalled US-Iran peace talks aimed at ending the seven-month-long war in the Middle East and their implications for crude exports.