South Korea, Japan stocks climb as Asian equities mirror Wall Street gains

ASIAN stocks followed Wall Street higher, while oil slipped after US President Donald Trump played down the prospect of a prolonged conflict with Iran. The yen remained in focus after its sudden strengthening.

MSCI’s Asia-Pacific equities gauge advanced 0.5 per cent, with benchmarks in Japan and South Korea gaining.

Among the main moves in markets, S&P 500 futures were little changed as at 9.03 am Tokyo time. Hang Seng futures rose 0.5 per cent, Japan’s Topix rose 0.5 per cent and Australia’s S&P/ASX 200 was little changed.

That came after the S&P 500 Index snapped a three-day decline and the tech-heavy Nasdaq 100 rose 0.2 per cent. Technology shares remained in focus after Broadcom predicted a boom in artificial intelligence chip sales over the next two years.

Early attention in Asia was on the yen, which weakened slightly to trade around 158.83 per US dollar on Thursday (Sep 3), after strengthening to as much as 158.22 in New York trading. The currency’s advance kept traders on alert for further intervention by authorities.

Adding to the positive tone, Brent slipped 0.6 per cent to US$95.10 a barrel after Trump said renewed attacks on Iran would likely be short-lived and reiterated his claim that the US controls the crucial Strait of Hormuz.

Easing oil prices also helped bonds gain during the US session, pushing Treasury yields lower after their surge to multi-year highs.

The brighter tone followed a cautious start to September, when global bond yields surged as renewed fighting in Iran drove oil higher, fueling inflation concerns and bets on a US Federal Reserve interest rate hike in September.

With earnings season largely over, attention is shifting to Friday’s US jobs report for clues on the US economy and the policy outlook.

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“Stocks are finding some footing after a difficult start to September,” said Angelo Kourkafas at Edward Jones. “Underlying fundamentals remain constructive. While seasonal headwinds merit attention, they are not sufficient on their own to derail the broader market uptrend.” 

Tensions had escalated in the Middle East as the US military carried out a second round of strikes in three days overnight, targeting radar systems and mine-laying capabilities along Iran’s southern coast.

Iran retaliated with drone and missile volleys against US bases across the Middle East, continuing a pattern seen throughout the six-month war.

Asked on Wednesday how long the bombing campaign could last, Trump told reporters, “I don’t think too long”.

In Asia, the sharp rise in the yen left traders on alert for signs of further action by Japanese authorities to support the currency.

The yen began strengthening on Wednesday after a Bank of Japan board member raised the possibility of outsized or back-to-back interest rate hikes. The sudden move in New York trading reverberated across the US$9.5-trillion-a-day currency market.

Traders also parsed data showing US companies added jobs at a more moderate pace in August, with the increase the smallest since the start of 2026.

The figures suggest employers are still hiring, though at a slower pace than in the spring, ahead of closely watched Labor Department jobs data on Friday.

New York Fed president John Williams told CNBC there is evidence inflation continues to ease as the impact of tariffs fades, while higher energy prices have yet to spill over into services.

“His comments by no means rule out a September hike, but they challenge the market view that a September rate hike is clearly odds-on,” said Krishna Guha at Evercore. BLOOMBERG