Asian equities opened Friday on a mixed note, with Japanese, Indian, and broader Asian indices reflecting investor caution amid fluctuating oil prices and uncertainty over US economic signals. Currency movements and bond yields also influenced sentiment, as traders looked ahead to key US labour market data later in the day.
Japan: slight gains amid yen pressure
In Tokyo, the Nikkei 225 edged higher in early trading, supported by technology and export-oriented stocks. A weaker yen against the US dollar provided a lift to major exporters, although concerns about domestic consumption tempered gains. Investors remain watchful of potential Bank of Japan intervention, with the currency hovering at multi-decade lows.
India: energy stocks drag benchmark lower
Indian markets opened softer, with the Sensex and Nifty 50 dipping in early trade. The decline was largely led by energy and financial stocks, pressured by volatility in crude oil markets. Rising bond yields added to the cautious sentiment. However, IT and pharmaceutical sectors showed resilience, reflecting continued demand for India’s outsourcing and healthcare exports.
Broader Asia: mixed performance across the region
Elsewhere in Asia, Hong Kong’s Hang Seng Index struggled to find direction, weighed down by property developers and financials. Meanwhile, mainland China’s markets remained subdued as investors awaited fresh policy signals from Beijing amid concerns over economic slowdown. In contrast, South Korea’s Kospi saw moderate gains, supported by semiconductor stocks, while markets in Southeast Asia traded largely flat.
Investor outlook
Market participants remain cautious ahead of the release of US non-farm payrolls data, which could influence the Federal Reserve’s stance on interest rates. Oil prices, still volatile following supply concerns, are another key factor shaping sentiment. For Asian markets, external drivers – from US monetary policy to energy prices – continue to set the tone, leaving investors balancing optimism over global recovery with caution over near-term risks.
Newshub Editorial in Asia – 3 October 2025
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