Asian markets opened mixed on Tuesday as rising oil prices, higher bond yields and renewed tensions in the Middle East weighed on investor confidence. Gains in Japan and mainland China were limited, while Hong Kong and Australia moved lower.
Japan struggles for direction
Tokyo’s Nikkei 225 remained close to unchanged, rising around 0.1 per cent during the session. Investors were unsettled by a sharp sell-off in Japanese government bonds, which pushed the country’s ten-year yield to 3 per cent for the first time since 1996.
The rise reflected growing concern over inflation, government spending and expectations that the Bank of Japan could increase interest rates during September. The yen remained weak at close to 160 against the US dollar. Reuters
Hong Kong pressured by Shein debut
Hong Kong’s Hang Seng fell close to 1 per cent. Sentiment was affected by a disappointing market debut for fast-fashion company Shein, whose shares dropped during their first day of trading.
Mainland China was more stable, with the Shanghai Composite trading close to unchanged. A private survey showed that Chinese manufacturing activity expanded faster in August, supported by stronger output, orders and exports.
The RatingDog manufacturing purchasing managers’ index rose to 51.5 from 50.9 in July, remaining above the level that indicates expansion. Reuters
Oil keeps investors cautious
Australian shares edged lower as banks, retailers and property-sensitive companies faced pressure from rising borrowing costs. Indian markets also opened cautiously despite stronger-than-expected economic growth.
Brent crude climbed above $91 per barrel as renewed Middle East fighting raised concerns about energy supplies and global inflation. Higher oil prices are particularly important for Asian economies that depend heavily on imported energy.
The opening reflected a nervous start to September, with investors balancing signs of stronger regional manufacturing against inflation, geopolitical risk and the prospect of further interest-rate increases.
Newshub Editorial in Asia – 1 September 2026
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