(fxcue news) - Asian stocks ended mostly higher on Monday, even as Japanese markets fell notably as the dollar sank to a three-week trough against the yen on dovish Fed outlook and Bank of Japan Governor Kazuo Ueda's hawkish remarks on Friday reaffirming his resolve to raise interest rates. The dollar was under selling pressure and bond yields softened after Federal Reserve Chair Jerome Powell signaled imminent interest-rate cuts. Gold firmed up and oil jumped about 1 percent in Asian trading after high-level Gaze ceasefire talks in Cairo ended without final agreement. Israeli and Hezbollah forces engaged in extensive exchanges of fire early Sunday morning along the Israel-Lebanon border, marking a significant escalation in their longstanding conflict. China's Shanghai Composite fluctuated before finishing marginally higher at 2,855.52. Hong Kong's Hang Seng index climbed 1.06 percent to 17,798.73, extending a three-week running run. Japan's Nikkei average dropped 0.66 percent to 38,110.22 as the yen jumped on broadly weaker dollar, weighing on exporter stocks. The broader Topix index settled 0.87 percent lower at 2,661.41. Decliners were led by transportation equipment, bank and rubber product issues. Department store operator Isetan Mitsukoshi Holdings slumped 6.5 percent and Takashimaya declined 1.3 percent. Seoul stocks ended lower for a second day running, with the Kospi average falling 0.14 percent to 2,698.01. Tech stocks led losses, with Samsung Electronics and SK Hynix losing 2.1 percent and 3.2 percent, respectively. The local currency rose to its highest level in over five months against the U.S. dollar on Powell's dovish remarks. Australian markets saw broad-based gains to reach a three-week high as investors cheered the prospect of a September rate cut by the Federal Reserve. The benchmark S&P/ASX 200 jumped 0.76 percent to 8,084.50, marking its highest level since August 1. The broader All Ordinaries index gained 0.76 percent to close at 8,311.50. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.48 percent to 12,589.83. U.S. stocks rose sharply on Friday and the 10-year Treasury yield dropped to just below 3.80 percent after Fed Chair Powell indicated the time has come for policy to adjust. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks," Powell said at the Jackson Hole Economic Symposium. The Dow climbed 1.1 percent and the S&P 500 added 1.2 percent to reach their highest closing levels since reaching record highs in mid-July while the tech-heavy Nasdaq Composite surged 1.5 percent.