Asian Markets Whipsaw as BOJ Hawkishness Lifts Yen and Tech Volatility Lingers
Asian equities traded in a choppy, whipsaw pattern on September 2, 2026, as investors balanced tech sector volatility against a strengthening Japanese yen. The yen rallied to 157.6 per dollar after Bank of Japan board member Hajime Takata suggested the central bank should raise rates more aggressively to combat inflation, pushing markets to price in a near-certain rate hike in September. While the Nikkei 225 dipped into negative territory before recovering, South Korea’s KOSPI swung sharply between gains and losses. Attention now shifts to Friday’s U.S. nonfarm payrolls report, which will provide critical clues on the Federal Reserve’s policy path, with markets currently pricing a two-thirds chance of a 25-basis-point rate hike this month.