TOKYO – Asian shares traded mostly higher Monday, cheered by a record finish last week on Wall Street.

In afternoon trading, Japan’s leading Nikkei 225 index saw a 1.0% rise, reaching 45,515.33, recovering from the dip it experienced late last week due to worries about the Bank of Japan selling its assets. These concerns eased as investors anticipated any such actions would occur gradually.

Elsewhere, Australia’s S&P/ASX 200 climbed 0.4% to 8,810.90, while South Korea’s Kospi increased by 0.6% to 3,465.33. In contrast, Hong Kong’s Hang Seng fell 1.0% to 26,268.53. The Shanghai Composite showed little movement, decreasing slightly by less than 0.1% to 3,818.50.

The S&P 500 advanced by 0.5%, wrapping up its sixth victorious week in the past seven. The Dow Jones Industrial Average gained 172 points, or 0.4%, while the Nasdaq composite rose 0.7%. All three indices reached record highs for the second consecutive day.

The S&P 500 improved by 32.40 points, settling at 6,664.36. The Dow Jones Industrial Average went up by 172.85 points to 46,315.27, and the Nasdaq composite increased by 160.75 points, ending at 22,631.48.

This upward trend stems from the belief that the Federal Reserve will proceed with reducing interest rates to stimulate economic growth. The central bank made its first reduction of the year on September 17.

If the Fed continues to lower interest rates, it could potentially revitalize the weakened housing market. However, increased expectations might lead to disappointment and a significant market drop if the Fed doesn’t cut rates as much as traders anticipate.

Fed officials have said more rate cuts are likely this year and next. Fed Chair Jerome Powell said last week that the central bank may have to react quickly because inflation is remaining stubbornly high in the American economy while the job market is slowing, all the while as President Donald Trump’s tariffs threaten to push inflation higher.

“Every time the market seems to be running out of momentum, it fools most of us by pushing to higher heights,” said Jay Woods, chief market strategist at Freedom Capital Markets.

“As traders continue to monitor new highs on a daily basis, they are really focused on what Fed officials will have to say as they make the speaking rounds this week.”

In the bond market, Treasury yields ended last week being relatively steady. The yield on the 10-year Treasury edged up to 4.12% last Friday from 4.11% late Thursday.

In energy trading, benchmark U.S. crude rose 48 cents to $63.16 a barrel. Brent crude, the international standard, added 41 cents to $67.09 a barrel.

In currency trading, the U.S. dollar rose to 148.06 Japanese yen from 147.91 yen. The euro cost $1.1747, up from $1.1745.