Asia-Pacific shares drift ahead of US payrolls data

Market snapshot:

• Asian equities traded without a clear direction as investors positioned for the upcoming US non-farm payrolls report at 8:30am ET on Friday, 4 September 2026.
• Crude oil held firm around recent peaks, as a lack of fresh Middle Eastern developments kept the market steady.
• Gold moved in a narrow range near $4,475 per ounce.
• According to Nomura, the Bank of Japan might raise rates at each of its next three meetings through December in an extreme case, provided renewed yen depreciation drives USD/JPY back toward 160. The bank's head of FX strategy Japan described a quarter-point increase this month as "reasonable."
• RBNZ Assistant Governor Karen Silk indicated that the central bank's next interest rate increase will probably come in December rather than October. Meanwhile, separate comments from Monetary Policy Committee member Carl Hansen largely repeated the bank's existing guidance.
• NZD/USD climbed back above 0.5900 following a decline in the middle of the week, while USD/JPY returned to the 156 mark after falling on Thursday.
• Asian stocks followed a higher Wall Street session, with Japan's Nikkei rising roughly 1% and South Korea's Kospi adding 1.3%.

Asian equity markets showed little direction on Friday as most participants focused on positioning for the US payrolls release at 8:30am ET. Crude oil remained stable near its recent highs, helped by the absence of new Middle East headlines, while gold moved sideways at about $4,475 an ounce.

For central banks, Nomura sees the Bank of Japan delivering rate hikes at three straight meetings through December in an extreme situation, if the yen weakens anew and pushes USD/JPY back toward 160. The bank's head of FX strategy Japan described a quarter-point increase this month as "reasonable" regardless of the yen's path. In New Zealand, RBNZ Assistant Governor Karen Silk signalled the next rate hike is more probable in December than October, while separate remarks from Monetary Policy Committee colleague Carl Hansen essentially rehashed the bank's existing guidance, contributing nothing new.

Currency markets saw limited activity as well. NZD/USD recouped above 0.5900 after dropping during the week, and USD/JPY climbed back to 156 following its Thursday retreat. Regional stock markets drew direction from Wall Street's overnight gains, with the Nikkei advancing about 1% and the Kospi rising 1.3%.

In addition, USD/JPY was edging toward 156.40, extending its bounce from Thursday's fall.