Asian stock markets displayed a varied performance on Thursday as geopolitical tensions intensified in the Middle East owing to the ongoing conflict between Iran and Israel.
Japanese markets notably outshined their regional counterparts after Prime Minister Shigeru Ishiba indicated that the current economic environment does not support an additional interest rate hike.
The U.S. dollar reached its highest level in over six weeks against the yen, while gold prices dipped slightly following unexpectedly strong U.S. private payroll figures released the previous night.
Oil prices continued their upward trajectory for the third consecutive day, fueled by concerns over possible disruptions in crude oil supply from the Middle East.
Mainland China's markets remained closed due to a week-long public holiday. Similarly, South Korean markets were closed for the National Day holiday. In Hong Kong, the Hang Seng index fell by 1.47 percent to 22,113.51, with declines led by real estate and tech stocks.
In Japan, markets surged as the yen weakened, bolstered by statements from Prime Minister Ishiba and Bank of Japan Governor Kazuo Ueda, who downplayed the prospect of an imminent interest rate hike.
Investors also assessed data from surveys indicating that Japan's service sector activity continued to grow for the third consecutive month in September, though the rate of growth decelerated slightly.
The Nikkei 225 index rose sharply by 1.97 percent to close at 38,552.06, while the broader Topix index gained 1.20 percent, settling at 2,683.71. Automakers such as Honda Motor, Toyota, Mitsubishi Motors, and Nissan registered gains of 1 to 2 percent.
Australian markets concluded the day relatively flat, with advances in the mining sector balancing out declines in the energy sector.
Across the Tasman Sea, New Zealand's S&P/NZX 50 index climbed 0.97 percent to reach 12,572.66.
In the United States, stock markets closed slightly higher as the anticipated impact of escalating geopolitical tensions in the Middle East was counterbalanced by data from payroll processor ADP, which reported stronger-than-expected growth in private sector employment for September.
The Dow Jones Industrial Average, along with the tech-centric Nasdaq Composite and the S&P 500, all closed with minor gains, demonstrating a positive tilt.
