HONG KONG - Asian markets kicked off the week with a rally on Monday morning, tracking gains made by Wall Street on Friday after the US central bank chief suggested coming interest rate cuts.
Investors weighing the prospects of a September cut had been closely eyeing the speech by Federal Reserve Chair Jerome Powell at an annual symposium in Jackson Hole, Wyoming.
"The balance of risks appears to be shifting," Powell said, noting a slump in employment even as inflation remains above target.
He added that the "unusual" situation "may warrant adjusting our policy stance".
Wall Street stocks surged following Powell's speech, rebounding from a tech sell-off earlier in the week. European markets also ticked upwards.
During the first trading sessions in major Asian markets following the comments, stocks made notable gains.
Hong Kong's main index was up nearly 1.3 percent one hour after opening, while benchmarks in Tokyo, Shanghai, Sydney, Seoul and Taipei also rose.
Oil markets were nearly flat on Monday, following price increases made last week as investors considered the potential for a peace deal in Ukraine more than three years after Russia's invasion.
Traders are now eagerly awaiting a quarterly earnings report from US chip juggernaut Nvidia on Wednesday, which is expected to shed light on how its strong push into artificial intelligence is faring.