Asian tech shares powered ahead on Monday, driving stock markets higher, while the dollar wobbled on weak U.S. economic data and worries about a possible hurricane-related supply crunch pushed crude oil futures higher. Tokyo's Nikkei average rose 0.91 percent as investors took their cue from gains in U.S. tech stocks, snapping up Toshiba Corp. <6502.T> and several other lagging high-tech issues. An MSCI index of non-Japan Asian share markets <.MSCIAPJ> gained 0.64 percent by 0230 GMT, led by South Korea's KOSPI, which rose 1.48 percent after its biggest stock, Samsung Electronics, jumped 2.4 percent. On Friday, Samsung's stock was chased higher when it said it was considering a share buyback. South Korea's KOSPI is the best performer in Asia over the past two months, having risen about 13 percent. The dollar extended losses made after a fall in U.S. producer prices prompted questions about the Federal Reserve's resolve to raise interest rates in September and beyond. "A rate hike next week looks very likely, but you can't rule out the risk of dollar selling this week if any of the upcoming data casts doubt on that scenario," said Hideaki Furumaya, forex manager at Trust & Custody Services Bank in Tokyo.
The Fed is widely expected to raise its benchmark rate by 0.25 percentage point on Sept. 21, but traders said that each U.S. economic indicator until that date would be scrutinised for clues on the interest rate outlook. The dollar bought around 109.53 yen , down from around 109.65 in late New York trade on Friday. The euro was at $1.2258, not far from where it was late last week. Upcoming U.S. economic data this week include the current account, net capital inflows, retail sales, consumer sentiment and consumer prices. Crude oil prices were up 1.64 percent, or 70 cents, at $43.51 after sagging as low as $42.52 in New York on Friday. Gold was little changed at $401.00 versus $401.55 in the U.S.
ELECTION BOOST
Hong Kong stocks <.HSI> gained 0.81 percent, led by property and banking stocks, after the territory voted in the most fiercely fought legislative elections since the former British colony reverted to China in 1997. Pro-democracy candidates made limited gains against the Beijing camp in the election for the 60-seat Legislative Council, which democrats, stung by a sex scandal, have portrayed as a virtual referendum on universal suffrage. Australian stocks hit a record high in early trade, getting a boost from banks and rises on Wall Street at the end of last week. Australia's benchmark S&P/ASX 200 index <.AXJO> was 0.39 percent higher at 3609.9. It earlier touched a record high of 3612.7. The Dow Jones industrial average <.DJI> closed up 0.23 percent at 10,313.07 on Friday and the Nasdaq Composite Index <.IXIC> rose 1.32 percent to 1,894.31.The Philadelphia Semiconductor Index <.SOXX> leapt 3.4 percent. Japanese government bond (JGB) prices were mixed, pausing after a rally last week sparked by surprisingly weak data that cast doubts on the strength of Japan's economic recovery. Traders said that for now the market was vulnerable to the effects of movements in share prices and other external factors while waiting for the next round of economic data. The yield on the benchmark 263rd 10-year cash bond <0#JPTSY=JBTC> was unchanged at 1.510 percent, after briefly dipping to a one-week low of 1.495 percent on Friday. The December JGB futures contract <0#2JGB:> was up 0.08 point at 137.23///