Asian markets opened with a mixed tone on Thursday, as strong performances in tech shares were offset by growing political uncertainty in key economies and lingering caution ahead of key US jobs data.
Tokyo’s Nikkei 225 edged up in early trading, buoyed by renewed appetite for semiconductor and robotics stocks following gains in US tech overnight. Shares in Advantest and SoftBank Group posted early gains, while Toyota remained flat after weaker-than-expected sales data. The benchmark hovered just above the 40,400 mark, with traders eyeing potential intervention from the Bank of Japan amid continued yen weakness.
In contrast, Hong Kong’s Hang Seng Index opened lower, weighed down by property developers and financials. Investor sentiment remained fragile amid China’s ongoing economic struggles and concerns about local government debt. While recent stimulus efforts from Beijing have helped stabilise the yuan, confidence in a sustained recovery remains tepid. Tech giants Alibaba and Tencent slipped slightly at the open, mirroring cautious sentiment across the broader mainland indexes.
Shanghai’s Composite Index opened relatively flat as markets awaited clearer signals on policy easing from the People’s Bank of China. Recent data on services PMI pointed to slower-than-expected recovery in consumer-facing sectors, keeping pressure on policymakers to provide further support in coming weeks. Analysts say markets are likely to remain rangebound without a decisive catalyst.
South Korea’s Kospi also struggled for direction. Chipmaker Samsung Electronics saw modest gains following upbeat earnings guidance, but the broader index remained weighed down by weakness in banking and telecoms. Meanwhile, the won stayed under pressure against the dollar, reflecting broader regional currency trends tied to Fed rate expectations.
In Australia, the ASX 200 edged higher in early trade as miners benefited from firmer commodity prices. Iron ore and gold producers led gains, while the country’s big four banks were little changed. The market was also reacting to a fresh set of trade balance data, which showed a narrower surplus in May as exports to China slowed.
Markets across the region are expected to tread cautiously ahead of the US non-farm payrolls report due Friday, which could significantly influence expectations for the Federal Reserve’s next move. A stronger-than-anticipated jobs number would likely dampen hopes of a September rate cut, putting pressure on risk assets globally.
Investors are also keeping an eye on political developments in Europe and the US, where uncertainty surrounding fiscal policy and upcoming elections continues to drive volatility. For now, Asian markets appear to be marking time, with short-term moves dictated by sector rotation, data surprises, and currency pressures rather than strong directional conviction.
REFH – newshub finance
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