Asian stock markets took a hit on Thursday, following a third consecutive day of losses on Wall Street. The prolonged rally that had been setting records is showing signs of fatigue. Oil prices, however, gained nearly USD 1, and US futures were mixed.

In Japan, the benchmark Nikkei 225 index lost its earlier gains and was trading flat at 38,104.86. This downturn was partly due to purchasing manager indexes (PMIs) indicating deteriorating conditions for both manufacturing and services in Japan. According to a commentary by Usamah Bhatti, an economist at S&P Global Market Intelligence, the overall composite PMI compiled by au Jibun Bank fell to a two-year low. He noted, "Japan`s private sector fell into contraction territory at the start of the fourth quarter of the year," adding that confidence in business activity growth for the next year softened, reaching its lowest level since August 2020.