Market Overview
Asian equity markets displayed mixed performance on Friday as investors awaited U.S. non‑farm payroll data, with heightened bond yields and oil prices dampening risk appetite.
Index Movements
- Japan’s Nikkei 225 declined 0.9% and the broader TOPIX fell 1.1%.
- Hong Kong’s Hang Seng Index dropped 3% to approximately 23,900 points, marking an 11‑week low, while the Hang Seng TECH sub‑index slipped 2.5%.
- South Korea’s KOSPI edged up 0.3% after fluctuating earlier in the session.
- Australia’s S&P/ASX 200 rose 0.5% and Singapore’s Straits Times Index decreased 0.3%.
- Mainland Chinese markets remained closed for the National Day Golden Week holiday, scheduled to reopen on Oct 8, and India’s markets were closed for Mahatma Gandhi Jayanti.
Economic Data
Tokyo’s core consumer price index for September rose 2.7% year‑on‑year, accelerating from 1.8% in August and surpassing the 2.4% market forecast. The Bank of Japan has lifted its policy rate to 1.25% and is considering another hike in October or December.
U.S. non‑farm payrolls were expected to add 89,000 jobs in September with unemployment steady at 4.1%. Market pricing indicated about a 25% probability of a Federal Reserve rate increase in October, down from 69% a week earlier, while a December hike remained fully priced according to CME FedWatch.
Bond and Commodity Markets
The U.S. 10‑year Treasury yield traded around 5.25% in Asian trading after reaching a peak of 5.34% on Thursday, the highest level since 2002, contributing to higher global borrowing costs and pressure on equity valuations.
Brent crude oil remained above $102 per barrel as the United States reportedly planned increased military presence in the Middle East and China halted oil‑product exports, adding to inflation concerns.