Asian markets mostly up as traders eye Fed minutes

Asian stocks mostly rose Monday following small gains on Wall Street as investors grow increasingly optimistic that the Federal Reserve has come to the end of its interest rate hiking cycle.

After a string of reports pointing to slowing inflation and a cooling jobs market, traders are shifting back into riskier assets as they bet on a loosening of financial conditions in the new year, with many eyeing rate cuts.

Focus will be on the release later in the week of minutes from the Fed's November policy meeting, where officials held borrowing costs and hinted that they could be finished with their tightening campaign.

"While the Fed is likely pleased with the evolving data, the minutes will be scrutinised in the context of easier financial conditions since the meeting and a more favourable macro environment supporting the soft landing narrative," said SPI Asset Management's Stephen Innes.

All three main indexes on Wall Street ended slightly higher Friday, while observers said they expected this week to see light trading heading into the Thanksgiving holiday.