Asian markets opened mostly higher on Thursday as investors returned to equities following a recovery in global bond markets. Attention remained firmly focused on forthcoming US employment data and its potential effect on interest rates.
Regional shares move higher
The MSCI index of Asia-Pacific shares outside Japan advanced approximately 0.5 per cent during early trading.
Japan’s Nikkei 225 gained around 0.3 per cent, while the Shanghai Composite rose approximately 0.4 per cent. Hong Kong’s Hang Seng remained close to unchanged after recording a marginal increase.
Singapore’s Straits Times Index and Australia’s S&P/ASX 200 both added around 0.5 per cent.
Indian markets also opened higher following three consecutive sessions of losses. The Nifty 50 and BSE Sensex each gained approximately 0.25 per cent, supported by strength among banks and other financial companies.
Japanese economy supports sentiment
Japanese market confidence was strengthened by new data showing that the country’s services sector expanded at its fastest pace in five months during August.
The figures reinforced expectations that the Bank of Japan could raise interest rates again. The yen extended its recent gains after policymakers indicated that rate increases may be required to control inflation.
Japanese government bond yields nevertheless moved lower from recent historic levels, following an overnight recovery in US Treasury markets.
Investors await US employment figures
Markets are now preparing for Friday’s US non-farm payrolls report, which could influence whether the Federal Reserve raises interest rates in September.
Expectations of tighter American monetary policy have increased sharply, placing pressure on global bonds and borrowing costs.
Oil prices eased slightly during Asian trading but remained elevated as investors monitored renewed tensions between the United States and Iran. The combination of geopolitical uncertainty, high energy costs and changing interest-rate expectations is likely to keep Asian markets volatile ahead of the weekend.
Newshub Editorial in Asia – 3 September 2026
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