Asian equities advanced in subdued trading on Friday, with most major markets closed for the Labor Day holiday, including China, Hong Kong, and Singapore [1]. The gains followed record closes on Wall Street the previous day, where the S&P 500 and Nasdaq 100 reached new highs, buoyed by strong corporate earnings and easing oil prices [1]. Apple further supported positive sentiment in the technology sector after posting quarterly results that exceeded expectations following the US market close [1].
Japan's Nikkei 225 rose approximately 0.67% to near 59,680, while the broader Topix index edged up 0.11% at the time of reporting [1]. Japanese equities benefited from a weakening Yen against the US Dollar, which typically supports export-oriented sectors and increases the attractiveness of domestic assets for foreign investors [1].
Australia's ASX 200 climbed 0.9% to around 8,740, snapping an eight-session losing streak and rebounding from a three-week low [1]. The rally was driven by bargain buying, particularly in non-energy minerals and industrial services, and was further supported by an upward revision to April’s manufacturing PMI, despite ongoing softness in output and subdued demand both domestically and internationally [1].
Traders remained cautious amid ongoing geopolitical tensions, closely monitoring developments in the Middle East after President Donald Trump reiterated the US commitment to a naval blockade of Iranian ports, while Tehran maintained its stance on its nuclear program and control over the Strait of Hormuz [1].
CONCLUSION
Asian stocks posted gains in thin holiday trading, led by Japan and Australia, as positive US market momentum and sector-specific factors supported sentiment. However, trading volumes remained muted and caution persisted due to ongoing geopolitical tensions in the Middle East.