Major Asian equity markets opened with mixed and hesitant movements on Friday, 7 August, as investors weighed rising oil prices, renewed tension surrounding the Strait of Hormuz and the approaching US employment report. Technology shares remained under pressure, while Chinese markets showed greater resilience.
Tokyo reverses an initially firm opening
Japan’s Nikkei 225 opened at approximately 65,797, slightly above Thursday’s close of 65,683. The early stability quickly faded, however, and the index moved around 0.7% lower to approximately 65,210 during morning trading.
Semiconductor and technology-related companies led the decline. Lasertec dropped almost 10%, SoftBank Group lost more than 6% and Screen Holdings fell approximately 4%. These movements followed Thursday’s retreat in Asian technology stocks and reflected continued concern that valuations linked to artificial intelligence investment may have risen too quickly.
The weaker yen offered limited support to exporters. The Japanese currency traded at approximately ¥158.5 against the US dollar, compared with ¥157.8 at the previous Tokyo close.
Seoul attempts to recover from Thursday’s rout
South Korea’s Kospi initially opened higher at approximately 6,365, a gain of more than 1% from Thursday’s close. The rebound proved difficult to sustain, and the benchmark subsequently slipped into negative territory.
The Kospi was recently around 0.5% lower as investors continued to reduce exposure to semiconductor heavyweights. Thursday’s session had produced a 4.6% fall after Samsung Electronics and SK Hynix suffered sharp losses.
The volatility highlights the market’s dependence on a relatively small number of technology and memory-chip companies. Although demand for artificial intelligence infrastructure remains strong, investors have become more selective about valuations and future earnings growth.
Hong Kong edges higher
Hong Kong opened marginally stronger, with the Hang Seng beginning the session near 25,566. The index subsequently gained approximately 0.1% as investors searched for value following Thursday’s 1.5% decline.
The modest increase reflected a cautious recovery rather than a broad rally. Investors remained concerned about global technology weakness, the direction of US interest rates and the impact of higher energy prices on regional growth.
Mainland China recovers from a soft start
The Shanghai Composite opened slightly lower at approximately 3,896, compared with Thursday’s close of 3,900. The index then reversed direction and advanced by as much as 0.5%, while the blue-chip CSI 300 gained approximately 0.2%.
Chinese shares received support from investors positioning ahead of further economic data and potential policy measures. However, concerns about domestic demand, property-sector weakness and trade relations continued to limit enthusiasm.
India falls as expensive oil weighs
Indian markets opened lower, with the Sensex beginning at approximately 78,516 after closing at 78,954 on Thursday. The index fell further during early trade, while the Nifty 50 declined towards 24,615.
Financial shares were among the largest drags. Bajaj Finance and Bajaj Finserv fell sharply after a draft proposal from the Reserve Bank of India raised concerns about possible restrictions on revolving credit products offered by non-bank lenders.
Higher oil prices created an additional headwind because India imports most of its crude requirements. Brent crude moved above $83 a barrel as concerns increased over security and shipping access through the Strait of Hormuz.
Investors await the US employment report
The wider MSCI Asia-Pacific index was broadly flat. Markets remained defensive ahead of the US payroll report, which could influence expectations for the Federal Reserve’s next interest-rate decision.
A stronger employment figure could reinforce expectations that US borrowing costs will remain elevated. A weaker result could support hopes for easier policy but might also raise concerns about slowing global demand.
Newshub Editorial in Asia – 7 August 2026
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