Asian markets began Friday, 2 October, on an uneven footing, with losses in Japan and Hong Kong contrasting with modest gains elsewhere. Elevated borrowing costs and uncertainty ahead of US employment figures kept investors cautious during the morning session.
Japan and Hong Kong retreat
Japan’s Nikkei 225 was down around 0.9% during morning trading, while Hong Kong’s Hang Seng fell 2.7%. South Korea’s Kospi and Taiwan’s Taiex each gained approximately 0.2%, and Australia’s S&P/ASX 200 advanced 0.4%. These were intraday readings rather than closing results.
Mainland Chinese exchanges remained closed for the National Day holiday. MSCI’s broadest measure of Asia-Pacific shares outside Japan fell 0.5% in an earlier snapshot, putting it on course for a weekly decline.
Despite Friday’s retreat, Japanese equities were still heading towards a weekly gain of more than 3%. Investors also assessed Tokyo core inflation of 2.7% for September, adding to questions about the Bank of Japan’s next policy steps.
Bond markets set the tone
US government debt remained central to the market mood. The ten-year Treasury yield hovered near 5.25% in Asian trading after reaching approximately 5.34%, its highest level since 2002.
Higher bond yields can make equities less attractive by increasing the return available from government debt. They can also raise financing costs for businesses and reduce the present value investors assign to future profits, creating particular challenges for highly valued growth companies.
Oil and employment data in focus
Brent crude traded around $102 a barrel as concerns over Middle Eastern supplies persisted. Meanwhile, economists expected the US September employment report to show roughly 90,000 additional jobs, with wage growth another important measure of inflation pressure.
For Asian economies dependent on imported energy, sustained oil-price strength could increase costs for transport, manufacturing and households. Stronger US wage growth could also reinforce expectations that American interest rates will remain elevated.
Friday’s early divergence suggests investors were weighing these pressures selectively. The US labour-market release remained the next major test for sentiment heading into the weekend.
Newshub Editorial in Asia – 2 October 2026
Asian markets began Friday, 2 October, on an uneven footing, with losses in Japan and Hong Kong contrasting with modest gains elsewhere. Elevated borrowing costs and uncertainty ahead of US employment figures kept investors cautious during the morning session.
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