Technology shares across Asia Pacific advanced sharply on Monday, fueled by optimism that a new model from OpenAI could drive stronger demand for memory chips. The gains followed a rally in US chipmakers and memory stocks on Friday as sentiment toward the sector improved, although broader markets remained under pressure after strong US jobs data reinforced expectations of a Federal Reserve rate hike this month. Investors also remained cautious as oil prices extended their advance after the US and Iran exchanged strikes on ships over the weekend, stoking fresh inflation concerns. Technology-heavy markets in Japan and South Korea led the regional advance, with the Nikkei 225 and KOSPI Composite rallying more than 2% and 3%, respectively.

The Japanese yen traded around 156 per dollar on Monday after gaining more than 2% last week, supported by growing expectations that the Bank of Japan will raise interest rates this month. Takuji Aida, an economic adviser to Prime Minister Sanae Takaichi, said the central bank is likely to hike rates in September and deliver another increase by January next year. The comments point to a widening recognition within the Takaichi administration, which has previously taken a dovish stance, that additional BOJ hikes may be needed to stem excessive yen weakness. The currency also benefited from the unwinding of carry trades, expectations for capital repatriation and increasing political pressure from the US. Meanwhile, data showed Japan’s foreign exchange reserves dropped by a record $79.6 billion in August following Tokyo’s largest-ever yen-buying intervention, with authorities spending about $99 billion between July 30 and August 26 to contain persistent weakness in the currency.

Australia’s ANZ–Indeed Job Ads rose 2.5% month -over-month in August 2026, quickening from July’s upwardly revised 1.9% gain and marking a second straight expansion. It was also the fastest pace since February, underscoring resilient labour demand despite higher borrowing costs. Seasonal hiring ahead of Christmas lifted retail and food service roles, while tech-related ads eased modestly, with softer demand in software, data, and analytics. ANZ Senior Economist Jasmine Zheng cautioned that momentum may fade as elevated rates restrain demand, expecting job ads to trend lower and unemployment to rise only modestly given the series’ resilience. Year-on-year, ads climbed 7.8% and remained 21.4% above their decade average, highlighting strength even as cyclical headwinds build.

Gold traded near $4,400 an ounce on Monday after declining about 1% in the previous session, pressured by growing expectations of an imminent Federal Reserve interest rate hike following stronger-than-expected US jobs data last week. Data released Friday showed US nonfarm payrolls rose by 162,000 in August, following an upwardly revised increase of 23,000 in July and well above market expectations for a gain of 56,000. Meanwhile, the unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, although the decline was smaller than economists had expected. Markets increased bets on a September Fed rate hike to roughly 60%, up from around 50% before the data release. Gold also remained under pressure from higher oil prices as the US and Iran exchanged strikes on ships over the weekend, stoking concerns about renewed inflationary pressures.

Japan’s foreign reserves fell by a record USD 79.6 billion, or 6.18%, to USD 1.208 trillion at the end of August 2026 from USD 1.287 trillion a month earlier, marking their lowest level since October 2022. The sharp drop came after Tokyo launched its largest-ever yen-buying intervention, spending ¥15.4 trillion ($98.7 billion) between July 30 and August 26 to curb persistent weakness in the currency. The decline was driven mainly by foreign securities, held largely in US Treasuries and accounting for about 70% of Japan’s reserves. The intervention helped strengthen the yen from around 164 per dollar to as high as 155.20 by August 3, although it later weakened toward 160 before recovering to around 155-156 in early September. Part of the operation was conducted jointly with the United States, marking the first coordinated intervention by the two countries since 2011. Japan could also tap a Federal Reserve backstop to raise dollar liquidity without outright selling US Treasuries.

Signs of tanker traffic through the Persian Gulf will be monitored after the outbreak of strikes between Iran and the US, prolonging the shock to energy supply from the region. The US will publish consumer and producer inflation rates, the last major releases before the Federal Reserve's September decision. Other key data includes Michigan consumer sentiment and existing home sales. In turn, Canada and Brazil will publish inflation rates. Meanwhile, the ECB will decide on interest rates, Germany will unveil industrial production, and the UK will release monthly GDP data. In Asia, a busy week will feature goods trade flows from China following renewed tariffs by the US, in addition to fresh CPI figures. Also, Japan is set to post its PPI, current account, and wages aggregates. Lastly, trade data from Taiwan could offer hints on AI infrastructure demand.