Investors weigh China stimulus and oil gains as Asia-Pacific markets open lower.

Investors weigh China stimulus and oil gains as Asia-Pacific markets open lower.
Investors weigh China stimulus and oil gains as Asia-Pacific markets open lower.
  • Asia-Pacific markets are set to open lower on Friday.
  • Investors on Wall Street will monitor losses while tensions in the Middle East keep them uneasy.
  • Concerns about a possible Israeli strike on Iran's oil industry led to a rise in U.S. crude futures by around 5% overnight and further increased on Friday morning.

The Asia-Pacific markets are predicted to open lower on Friday, following Wall Street's losses, as tensions in the Middle East keep investors anxious before the U.S. payrolls report in September.

The S&P/ASX 200 index in Australia was at 8,215 points, a slight decrease from its previous close of 8,205.2 points.

The Nikkei 225 futures in Japan are indicating a weaker market open, with the Chicago futures contract at 39,985 points and the Osaka counterpart at 39,879, compared to the previous close of 38,552.06.

The Hang Seng index futures in Hong Kong were lower than the HSI's last close, while Chinese stocks had been on a tear after authorities announced support measures last week. Markets in mainland China will reopen on Oct. 9.

The unstable start of October trading is due to rising tensions in the Middle East, which has negatively impacted investor sentiment. After a decline in stocks on Tuesday due to Iran's missile strike on Israel, investors are preparing for more uncertainty as Israel begins a ground operation in Lebanon.

On Friday morning, U.S. crude futures rose around 5% overnight and ticked higher again due to concerns that Israel could strike Iran's oil industry in retaliation for Tehran's missile attack this week. On Thursday, U.S. President Joe Biden commented on a possible Israel retaliation against Iran: "We're discussing that. I think that would be a little — anyway."

In the U.S., the Dow Jones Industrial Average slid 184.93 points, or 0.44%, to end at 42,011.59. The S&P 500 lost 0.17% to close at 5,699.94. The Nasdaq Composite ended the day off 0.04% at 17,918.48 as a rally of more than 3% in Nvidia capped downside pressure.

—CNBC's Alex Harring and Pia Singh contributed to this report.

by Lee Ying Shan

Markets