South Korea's Kospi led the gains with a 1.9% rise, while Japan's Nikkei Stock Average added 1.1%. Hong Kong's Hang Seng climbed 2.1%, and the Shanghai Composite recorded a 0.4% increase. This optimistic mood followed Waller’s comments, which tempered market expectations for aggressive U.S. monetary tightening. Commerzbank Research analysts noted that the risk-on sentiment was a direct response to the potential pause in rate hikes.

The currency markets saw significant volatility as the yen retreated from a one-month high. After reaching 155.27 against the dollar—its strongest level since August 3—the yen weakened to 156.33. This correction occurred despite growing anticipation of a Bank of Japan rate hike. Rodrigo Catril of National Australia Bank attributed the yen's earlier strength to hawkish signals from BOJ board member Hajime Takata and support for a stronger currency from U.S. Treasury Secretary Scott Bessent.

Simultaneously, crude oil futures drifted higher as geopolitical tensions escalated in the Middle East. West Texas Intermediate rose to $91.70 per barrel, while Brent crude reached $95.68. ANZ Research analysts warned that reports of military strikes involving U.S. bases in Kuwait and the UAE have heightened fears regarding potential supply disruptions through the Strait of Hormuz, a critical chokepoint for global energy shipments.