Asia shares rise as AI demand lifts chips; Brent stays above $100

  • Asian shares rose as AI demand supported chipmakers and oil prices eased.
  • Brent crude fell 0.2% to $103.68, remaining above $100 a barrel.
  • Japan's markets were closed for Silver Week through Wednesday, keeping regional trading thin.

Asian shares edged higher as strong AI demand supported chipmakers, while Brent crude remained above $100 despite easing 0.2% to $103.68. The dollar held at 157.00 yen as investors remained alert to possible Bank of Japan intervention after Japanese authorities conducted currency-market rate checks on Friday, the Nikkei newspaper reported. South Korea's tech-heavy index gained 1.1%, MSCI's broadest Asia-Pacific index outside Japan rose 0.3%, and U.S. and European equity futures also advanced modestly. Bond markets remained under pressure, with two-year U.S. Treasury yields reaching 4.7604% after rising 36 basis points in two weeks. Markets priced a 56% chance of another Federal Reserve rate hike in October and treated a move by year-end as certain. BofA analysts retained their call for two further hikes, in October and December, citing strong consumer spending and above-target inflation risks. Oil prices were supported by the continuing U.S.-Iran conflict and a Houthi attack on Riyadh, although hopes that Saudi Arabia could restore supply limited gains. CBA commodities chief Vivek Dhar said global oil and refined-product inventories could run down in 5 to 10 weeks, compared with 15 to 20 weeks estimated two weeks earlier. The euro was flat at $1.1477 after falling almost 1% last week, while gold slipped 0.2% to $4,370 an ounce.

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