Asian markets began the final quarter of the year quietly, with investor attention focused on bond markets as yields remained near multi-year highs. A slower-than-expected rise in U.S. inflation in August, together with a downward revision to July's reading, reduced some expectations of a Federal Reserve rate hike this month but did not prevent U.S. Treasury yields from reaching fresh overnight peaks and holding near them in Asian trading. Stalled U.S.-Iran peace talks aimed at ending the seven-month war in the Middle East have added to concerns about the global inflation outlook, while euro-zone prices rose faster than expected in some of the bloc's largest economies. Micron Technology's stronger outlook and $32 billion in customer commitments under long-term supply agreements failed to lift sentiment across Asia, where trading was reduced by holidays in Hong Kong and China. In Japan, a Bank of Japan Tankan survey showed business confidence reached an eight-year high in the July-September quarter amid elevated inflation expectations. A summary of views from the BOJ's September meeting, when borrowing costs were raised to a 31-year high, indicated that some policymakers favored faster tightening or bringing rates closer to the central bank's desired level sooner. Market indicators due Thursday include U.K. Nationwide house prices for September, France and Germany's September S&P manufacturing PMI readings, and the euro-zone unemployment rate for August.