Why it matters
- Hong Kong's drop was its first chance to react to a week of rising global bond yields.
- Tokyo's inflation reading is an early guide to national prices and to the Bank of Japan's next move.
- With mainland China closed until Oct. 8, Asian trading was thinner than usual.
Session recap: what happened in this region's trading day, with sources.
Asia's Friday session belonged to Hong Kong, and not in a good way.
The Hang Seng Index fell 2.99%, or about 736 points, to 23,877 as the city's market reopened after Thursday's National Day holiday, according to Trading Economics. It was the first chance for Hong Kong investors to react to a week in which the U.S. 10-year Treasury yield hit its highest level since 2002.
Losses were broad. Insurer AIA fell 5.5%, Xiaomi 4.4%, exchange operator Hong Kong Exchanges and Clearing 3.2% and Tencent 2.4%, Trading Economics reported. Mainland investors, who usually trade Hong Kong shares through the Stock Connect link, were absent: the link is suspended until Oct. 8 for China's Golden Week holiday.
Tokyo takes a breather
Japan's Nikkei 225 fell 0.94% to 68,309, ending a two-day winning streak as investors took profits after Thursday's 3.3% chip-led rally, according to Trading Economics.
The bigger news in Tokyo was inflation. Core consumer prices in the capital, which exclude fresh food, rose 2.7% from a year earlier in September, Newsquawk reported. Economists had expected 2.4%, and August's rate was 1.8%. A measure that also strips out energy rose 3.0%, above the 2.5% forecast.
Tokyo's figures are released weeks before the national data, so they are watched as an early signal. A faster rise in prices strengthens the case for the Bank of Japan, which raised its rate to 1.25% in September, to keep going.
Elsewhere in the region
Australia's S&P/ASX 200 rose about 0.5%, and South Korea's Kospi gained about 0.3%, according to NordFX's midday market summary. Mainland Chinese markets remain closed through Oct. 7.
What it means for the rest of the day
Europe opens with Hong Kong's sell-off in mind and euro area inflation data due. The U.S. jobs report follows at 8:30 a.m. Eastern time. Our day-ahead guide has the details.
Sources
- Trading Economics, Hong Kong stock market
- Trading Economics, Japan stock market
- Newsquawk, Japanese Tokyo core CPI, September
- NordFX, Market pulse, Oct. 2, 2026