Hong Kong markets resume rally as investors weigh China stimulus, oil gains

SINGAPORE — Asia-Pacific markets traded mixed on Friday following losses on Wall Street, with concerns over Middle East tensions keeping investors on edge in the run up to September's U.S. payrolls report.

Hong Kong's Hang Seng index is up over 2%, resuming a rally after slipping 1% in its first hour of trade.

Australia's S&P/ASX 200 lost 0.67% to close at 8,150 points. Japan's Nikkei 225 added 0.22% to close at 38,635.62 points points, while the broad-based Topix inched up 0.39% to end at 2,694.07 points. South Korea's Kospi was trading 0.31% higher to close at 2,569.71 points, while the Kosdaq rose 0.9% to close at 768.98 points.

Markets in mainland China will reopen on Oct. 8. Chinese stocks had been on a tear after authorities announced a slew of support measures last week.

October trading has had a shaky start as rising tensions in the Middle East weigh on investor sentiment. Following a decline in stocks on Tuesday due to Iran's missile strike on Israel, investors are bracing for more unpredictability as Israel begins a ground operation in Lebanon.

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

The Reserve Bank of India likely intervened in the non-deliverable forwards market ahead of Friday's opening of the local spot forex market to bolster the rupee, which is hovering near its all-time low, Reuters reported. On Thursday, the India rupee slipped for a fourth straight session.

The India rupee is currently trading at