Asian stocks mixed as investors await US jobs data

October 02, 2026 (MLN): Asian stocks traded mixed on Friday as investors turned cautious ahead of key U.S. jobs data that could influence expectations for the Federal Reserve’s interest-rate path, while elevated bond yields and oil prices weighed on risk appetite.

Hong Kong led regional declines, with the Hang Seng Index falling 3% to an 11-week low near 23,900 points. The Hang Seng Tech Index dropped 2.5%. 

Japan’s Nikkei 225 fell 0.9%, while the broader TOPIX index declined 1.1%.

South Korea’s KOSPI edged up 0.3%, while Australia’s S&P/ASX 200 gained 0.5%. Singapore’s Straits Times Index slipped 0.3%.

Mainland Chinese markets remained closed for the National Day Golden Week holiday and are scheduled to reopen on October 8. India’s markets were also closed on Friday for Mahatma Gandhi Jayanti, according to Investing.com.

Investors are awaiting U.S. nonfarm payrolls data due later Friday, with economists expecting the economy to have added 89,000 jobs in September and the unemployment rate to remain at 4.1%.

Market expectations for U.S. monetary policy have shifted sharply over the past week.

The probability of a Federal Reserve rate hike in October has fallen to around 25%, compared with 69% a week earlier, while a December increase remains fully priced in, according to CME FedWatch data cited by Investing.com.

Bond markets have remained a key source of volatility. The U.S. 10-year Treasury yield climbed to 5.34% on Thursday, its highest level since 2002, before easing to around 5.25% during Asian trading.

Higher long-term yields have increased borrowing costs globally and added pressure on equity valuations, it reported.

Japan’s inflation data also remained in focus after Tokyo’s core consumer price index rose 2.7% year-on-year in September, accelerating from 1.8% in August and exceeding the 2.4% market forecast.

The data came after a summary of the Bank of Japan’s September meeting showed that some policymakers saw a need to accelerate interest-rate hikes as inflation risks mounted.

The BOJ has raised its policy rate to 1.25%, while investors are assessing the possibility of another increase at its October or December meetings.

Oil remains above $100

Oil prices remained elevated, adding to inflation concerns. Brent crude held above $102 per barrel, while U.S. West Texas Intermediate crude traded around $92.46 per barrel.

Investing.com reported that investors were also monitoring developments in the Middle East and China’s oil-product export policy, which have added uncertainty to the global energy market.

Meanwhile, U.S. stock futures edged higher during Asian trading after Wall Street ended slightly higher on Thursday as Treasury yields eased from their session highs.

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