Asian markets delivered a divided performance on Friday, while European shares opened almost unchanged, African exchanges moved in different directions and most major Arab markets remained closed for the regional weekend. Rising bond yields, elevated oil prices and continuing tensions surrounding Iran dominated investor sentiment.
Asia struggles for direction
Asian equities opened mixed after losses on Wall Street and renewed selling in global government bonds.
Japan’s Nikkei 225 initially slipped around 0.2 per cent before extending its decline, as higher Japanese bond yields and stronger inflation data reinforced expectations that the Bank of Japan could raise interest rates in September.
South Korea’s Kospi gained approximately 0.9 per cent, while Hong Kong’s Hang Seng advanced around 0.7 per cent. Mainland China remained subdued, with the Shanghai Composite close to unchanged and the CSI 300 edging lower.
Australia’s ASX 200 declined around 0.3 per cent, while India’s Sensex traded marginally lower. Technology shares remained vulnerable to higher borrowing costs, although selective buying supported semiconductor and artificial intelligence-related companies in South Korea and Taiwan.
Arab markets face a quiet Friday
Most major Arab exchanges, including Saudi Arabia, Qatar, Kuwait, Oman and Egypt, were closed for their regular Friday break.
The United Arab Emirates remained the principal active Gulf market. Dubai opened cautiously and hovered close to unchanged, while Abu Dhabi moved lower after gaining strongly during Thursday’s session.
Regional investors continued to monitor the confrontation involving the United States and Iran, together with uncertainty over shipping through the Strait of Hormuz. The UAE’s suspension of commercial and financial dealings with Iran added another layer of concern for businesses with cross-border exposure.
Thursday’s final Gulf session had been mixed. Saudi Arabia gained 0.3 per cent and Abu Dhabi rose 0.7 per cent, while Dubai finished marginally lower. Qatar dropped 0.9 per cent to its lowest level in more than two years.
African exchanges divide
African markets also opened without a common direction.
Nigeria’s NGX All-Share Index fell approximately 0.3 per cent to 240,037.8 points in early trading. Market breadth was negative, with declining shares substantially outnumbering advancing stocks and market capitalisation falling by around ₦440 billion.
Nairobi moved in the opposite direction. Kenya’s All Share Index gained around 0.46 per cent to 244.38 points, supported by advances in several banking, telecommunications and consumer shares.
Johannesburg opened cautiously as investors balanced stronger precious-metal prices against pressure from global bond markets. Mining companies received some support from gold, while higher international yields created headwinds for property, technology and interest-rate-sensitive stocks.
Europe begins almost unchanged
European markets opened close to flat as investors assessed the threat of persistent inflation and higher financing costs.
The pan-European STOXX 600 edged 0.06 per cent higher to 650.79 points shortly after trading began. Basic-resource shares led the advance, rising around 1.3 per cent as the weaker dollar supported gold and other commodities.
The FTSE 100 recorded a modest gain, while Germany’s DAX and other continental benchmarks remained close to unchanged. The STOXX 600 was nevertheless heading towards a second consecutive weekly decline.
Oil and yields control sentiment
Brent crude briefly reached a one-month high of $94.71 per barrel before easing towards $93. Higher oil prices are supporting energy producers but renewing inflation concerns across importing economies.
The US ten-year Treasury yield climbed to 4.71 per cent, while the 30-year yield reached approximately 5.25 per cent. Those moves increased pressure on equity valuations and ensured that Friday’s global session began with caution rather than conviction.
Newshub Editorial in Europe – August 21, 2026
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