Asian markets began Thursday, 8 October, under pressure as elevated borrowing costs and renewed strength in oil prices kept investors cautious. Japanese and South Korean shares declined in early trading, while Indian benchmarks opened lower following the country’s first interest-rate increase in nearly four years.
Japan and South Korea retreat
Japan’s Nikkei 225 fell 0.7% to 69,559.50 shortly after trading began, with machinery manufacturers and trading houses among the weakest performers. Komatsu dropped 4.8%, while Mitsui & Co. lost 3.7%.
Investors were monitoring developments in the Middle East alongside oil prices and bond yields. Quarterly results from Fast Retailing and Seven & i Holdings, scheduled for later on Thursday, were also in focus.
A subsequent regional update put the Nikkei down 0.9%, South Korea’s Kospi 0.6% lower and MSCI’s broad Asia-Pacific index excluding Japan down 0.1%.
India opens lower after rate increase
India’s Nifty 50 opened 0.23% lower at 22,545.85, while the Sensex declined 0.24% to 72,455.17.
The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5% on Wednesday, responding to inflation pressures and strong economic growth.
Technology shares provided some support, with Tata Consultancy Services advancing ahead of its quarterly results. However, weakness across most sectors showed that investors remained cautious after the policy decision.
Dollar remains firm
Currency markets reflected continued uncertainty over US monetary policy. The dollar index stood around 102.23, near its strongest level in 18 months, after minutes from the Federal Reserve’s September meeting highlighted policymakers’ concerns about inflation.
Nevertheless, traders assigned only a 19% probability to another rate increase at the Fed’s October meeting.
The yen strengthened modestly after Japan reported an August current-account surplus above economists’ expectations. The dollar traded at approximately ¥157.82, while the Australian and New Zealand dollars were broadly steady.
Financing pressures remain in focus
Reports that major technology companies were seeking substantial borrowing to finance artificial-intelligence investment added to concerns about competition for funding.
Against that backdrop, Thursday’s early trading reflected continued sensitivity to financing costs, with investors watching corporate earnings for evidence that profit growth can withstand tighter financial conditions.
Newshub Editorial in Asia – 8 October 2026
Asian markets began Thursday, 8 October, under pressure as elevated borrowing costs and renewed strength in oil prices kept investors cautious. Japanese and South Korean shares declined in early trading, while Indian benchmarks opened lower following the country’s first interest-rate increase in nearly four years.
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