Asian stock indices close mixed before US jobs data

Asian stock indices finished without a clear direction on October 2, 2026. Investors showed caution amid conflict in the Middle East, elevated US Treasury yields, and expectations ahead of the US employment report. Mainland Chinese markets remained closed for a holiday that started on October 1, 2026, and will reopen on October 8, 2026.

In Tokyo, the Nikkei index fell 0.94% to 68,309.46 points, pressured by technology and financial shares. In Hong Kong, the Hang Seng dropped 2.60% to 23,972.29 points upon returning from a holiday. Conversely, South Korea's Kospi rose 0.46% to 7,003.74 points, Taiwan's Taiex advanced 0.25% to 48,475.74 points, and Australia's S&P/ASX 200 gained 0.79% to 8,682.10 points.

Risk appetite remained constrained as the United States reinforced its presence in the Middle East and President Donald Trump threatened Iran with further attacks. Brent crude fell 2.8% to around $99.50 per barrel after two days of gains. In the bond market, geopolitical risks and inflationary pressures pushed longer-term US Treasury yields to 24-year highs on October 1, 2026, before they eased late in the afternoon.

Markets awaited the US payroll report for indications regarding interest rate paths. According to the CME Group's FedWatch tool, the majority expectation points to the Federal Reserve maintaining interest rates in October. For December, market pricing leans toward a rate increase, following a hike delivered in mid-September 2026.