Asian shares gain with most markets closed for Labor Day

Asian stocks advance in holiday-thinned trading on Friday, following record closes on Wall Street the previous day. However, traders remain cautious amid ongoing US–Iran tensions. Trading activity stayed muted, with key markets in China, Hong Kong, and Singapore shut for the Labor Day holiday.

Japan’s Nikkei 225 trades about 0.67% higher near 59,680, while the broader Topix edges up 0.11% at the time of writing. Japanese equities move higher as the Japanese Yen (JPY) weakens against the US Dollar (USD) on Friday. A softer Yen typically reduces pressure on Japan’s export-oriented sectors and enhances the appeal of domestic assets for foreign investors.

Australia’s ASX 200 climbs 0.9% to around 8,740, snapping an eight-session losing streak and rebounding from a three-week low. Bargain buying supported widespread gains, led by non-energy minerals and industrial services. An upward revision to April’s manufacturing PMI also boosted sentiment, despite softer output and subdued underlying demand both domestically and internationally.

Asian equities draw support from a strong US session, where the S&P 500 and Nasdaq 100 reached fresh record highs, driven by solid corporate earnings and easing oil prices. After the close, Apple posted quarterly results that exceeded expectations, further supporting sentiment in the technology sector.

Traders also closely monitored developments in the Middle East after President Donald Trump reiterated that the US would continue its naval blockade of Iranian ports, while Tehran maintained it would not give up its nuclear program and signaled ongoing control over the Strait of Hormuz.