(fxcue news) - Asian stocks rallied on Monday and the dollar hit a fresh seven-week peak on the yen after robust U.S. jobs data signaled economic resilience but prompted trades to pare bets on aggressive Federal Reserve interest-rate cuts. After Friday's blowout payrolls report, traders now price in only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7, with a small chance that the policy rate stays unchanged. U.S. Treasury yields touched two-month highs, denting demand for bullion. Oil prices rose in Asian trading as Israel bombed targets in Lebanon and the Gaza Strip, with Monday marking one year since the Hamas attack that triggered war. Markets in mainland China remained closed until Tuesday for the Golden Week break. Hong Kong's Hang Seng index surged 1.60 percent to 23,099.78, extending a three-week rally to hit a 32-month high after Citi and Goldman Sachs joined peers Morgan Stanley and UBS in raising their targets for key China indices. Japanese stocks led regional gains, and the yen slumped against the dollar after Japan's top currency diplomat, Atsushi Mimura, warned against speculative moves in the currency market. The Nikkei average jumped 1.80 percent to 39,332.74 while the broader Topix index settled 1.68 percent higher at 2,739.39. Financials outperformed, with Resona Holdings surging 8.7 percent supported by a rise in Japanese government bond yields. Tech-related stocks such as SoftBank Group, Advantest and Screen Holdings climbed 2-3 percent. Seoul stocks posted strong gains, with chip and battery shares pacing the gainers. The Kospi average inched up 1.58 percent to 2,610.38. LG Energy Solution soared 4.1 percent on hopes of demand amid Tesla's expected reveal of its long-awaited robotaxi project. Australian markets rose notably despite a public holiday in parts of the nation. The benchmark S&P/ASX 200 rose 0.68 percent to 8,205.40, led by financials and technology stocks. The broader All Ordinaries index closed up 0.74 percent at 8,479. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.18 percent to 12,596.87. U.S. stocks rallied on Friday as upbeat jobs data raised optimism about the economy but dashed hopes of aggressive rate cuts in the coming months. Data showed that non-farm payroll employment jumped by 254,000 jobs in September after climbing by an upwardly revised 159,000 jobs in August. The jobless rate edged down to 4.1 percent from 4.2 percent in August. The Dow gained 0.8 percent to settle at a fresh record high, while the S&P 500 added 0.9 percent and the tech-heavy Nasdaq Composite climbed 1.2 percent.