Asian Shares Mixed as Yen Weakening Boosts Japan, Markets Eye Fed Path

Asian shares had a quiet start to the fourth quarter, while Japanese indexes were boosted by a weaker yen. The Japanese market rebounded after a sharp drop following the ruling party`s leadership race. Other Asian markets were mixed, with Taiwan higher and Australia lower. European futures were up.

The yen weakened after Federal Reserve Chair Jerome Powell reiterated the central bank`s stance on gradually lowering interest rates while affirming the US economy`s strength. Market focus has shifted from concerns about a US economic slowdown to the pace and extent of future Fed rate cuts.

Meanwhile, oil prices rose slightly as investors weighed the risks of escalating conflict in the Middle East following Israel`s ground raids in Lebanon. Australian retail sales exceeded expectations, buoyed by tax cuts and favorable weather, leading to a stronger Australian dollar. Japanese trading houses saw gains after Berkshire Hathaway explored a potential yen bond offering. Chinese markets were closed for a holiday following a significant rally.