Asian Markets Rally Ahead of U.S. Jobs Report

Asian shares and bonds staged a relief rally on Thursday as investors awaited U.S. employment data and central bank commentary. Market focus is centered on Friday's nonfarm payrolls report following disappointing private labor data for August, which will help determine if the Federal Reserve will raise interest rates this month.

John Williams, President of the Federal Reserve Bank of New York, tempered expectations for a rate hike, though CME Group's FedWatch tool indicates traders still assign a two-in-three chance of a 25-basis-point increase. In Japan, government bond yields fell from historic peaks ahead of a super-long debt auction by the Ministry of Finance.

Global markets remain volatile following the largest exchange of military attacks between the United States and Iran since July. This escalation has revived fears of regional instability and impacted global oil prices.