Tech stocks rally as US inflation data looms

Technology stocks rose Monday, led by chipmakers in Seoul and Tokyo, as investors looked ahead to US inflation data that could shape the Federal Reserve's September 16 interest-rate decision.

Samsung gained 5.7 percent in South Korea and SK hynix rose 8.3 percent. Technology investment group SoftBank climbed more than 11 percent. Seoul closed more than 4 percent higher, Tokyo's Nikkei 225 rose 2.1 percent to 66,399.84, and Taipei gained 1.7 percent with support from TSMC.

Broader markets were mixed. Hong Kong, Singapore, Wellington, Manila, Jakarta and Mumbai fell. In Europe, London was up 0.2 percent around 1045 GMT and Paris was up 0.1 percent, while Frankfurt fell 0.3 percent. Official data showed the eurozone economy grew in the second quarter, while separate data showed German factory output fell in July.

Investors are waiting for US consumer price data for August on Friday after jobs figures released last week increased expectations that the Fed could raise interest rates this month. Dan Coatsworth, head of markets at AJ Bell, said positive news around artificial intelligence was still supporting markets, but investors also had to contend with the possibility of a Fed rate rise.

Oil prices rose after weekend US-Iran strikes added to inflation concerns. Around 1045 GMT, Brent North Sea crude was up 0.6 percent at $96.89 a barrel and West Texas Intermediate was up 0.2 percent at $91.67. AAA said average US diesel prices reached a new record as damage to Gulf refineries during the war against Iran disrupted supplies.

The dollar fell to 154.67 yen from 156.26 yen on Friday. Trade Nation analyst David Morrison said the yen's gains against major currencies raised speculation that Japan may have intervened again, though there was no official confirmation. Wall Street was closed Monday for the US Labor Day holiday.