Global Markets Today, September 4, 2026: Indian Markets Seen Opening Higher As Asian Stocks Rise, Wall Street Rallies; Oil Remains Elevated

Mumbai, September 4: Indian equity benchmarks are likely to open higher on Friday, taking cues from a positive session on Wall Street and gains across Asian markets, although elevated crude oil prices and caution ahead of key U.S. jobs data could temper the upside. 

Asian markets gain on softer Fed expectations 

Asian shares rose on Friday as investors grew more confident that the U.S. Federal Reserve could hold rates, following comments from Fed Governor Christopher Waller that supported those expectations. 

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.07%, while Japan’s Nikkei rose 0.86%, South Korea’s Kospi rose 1.17% and Hong Kong’s Hang Seng rose 2.2%. The gains came after investors reassessed the outlook for U.S. monetary policy, with markets increasingly focused on signs of cooling inflation and a potentially weaker labour market. 

The dollar slipped and U.S. Treasury yields stayed put, improving the appeal of riskier assets and providing support to emerging-market equities. 

The positive Asian cues could provide an early boost to Indian equities after recent volatility. 

Wall Street rallies, futures subdued 

U.S. stocks ended sharply higher on Thursday as investors reassessed the Federal Reserve’s policy outlook, with the Dow Jones Industrial Average gaining 1.18%, the S&P 500 rising 1.06% and the Nasdaq Composite advancing 1.40%. 

However, U.S. stock futures were subdued in early Asian trading on Friday, suggesting some caution after the previous session’s rally. Dow Jones futures flatlined.  

Investors are now turning their attention to the U.S. nonfarm payrolls report, which could provide fresh clues on Fed policy. 

A softer jobs report could ease rate-hike fears and support emerging-market equities, while a stronger-than-expected reading could revive concerns over interest rates. 

Oil prices remain a headwind 

Crude oil remains a key risk for Indian markets, with prices holding at elevated levels amid continuing geopolitical tensions and concerns over supply disruptions. 

Brent crude rose 0.4% at $95.9 a barrel, while U.S. West Texas Intermediate crude also stayed elevated. Persistent strength in oil prices could weigh on sentiment towards oil-importing economies such as India. 

Higher crude prices can widen India’s trade deficit, put pressure on the rupee and increase input costs for several industries, including aviation, paints, chemicals and logistics. They can also complicate the inflation outlook and limit the room for monetary easing. 

Upstream oil producers, however, could benefit from stronger crude prices. 

What it means for Indian markets 

The combination of gains in Asian equities, a strong Wall Street close, steady U.S. Treasury yields and reduced expectations of tighter Fed policy points to a positive start for Indian markets on Friday. 

A weaker dollar and steady U.S. yields may offer some support to foreign flows into emerging markets. 

However, elevated crude prices and the upcoming U.S. jobs report are likely to keep investors cautious. With global markets already pricing in a shift in the Fed’s policy outlook, any surprise in the U.S. labour-market data could trigger volatility. 

Overall, Indian benchmarks are likely to begin the session on a firmer footing, but the sustainability of gains could depend on global rate cues, oil prices and the direction of foreign institutional flows. 

Source

•  Exchanges