Nikkei 225 Surges Up to 2.6% to Three-Month High on Easing Fed Hike Bets

Japan's Nikkei 225 rallied as much as 2.6% to reach 70,074 on Monday, marking a three-month high led by artificial intelligence, technology, and semiconductor shares. The surge was catalyzed by weaker-than-expected September U.S. employment data showing slower job creation and wage growth, which pushed the market-implied probability of an October Federal Reserve interest rate hike below 25%. Regional benchmarks also gained, with the MSCI Asia Pacific index advancing 1.1% and Japan's broader Topix index rising 1.2%, while the U.S. 10-year Treasury yield dropped two basis points to 5.25%.