MSCI’s broadest index of Asia-Pacific shares outside Japan slid 0.2%

Asian shares took a breather from their recent rally on Thursday as investors positioned for month- and quarter-end flows, while the yen tested new lows against the euro and a surging Swiss franc.

Oil prices slid, after surging more than 2% overnight to seven-week peaks as export issues in Iraq, Venezuela and Russia added to supply worries amid a surprise drop in U.S. crude inventories.

MSCI’s broadest index of Asia-Pacific shares outside Japan slid 0.2%, having rallied 5.5% for the month and 9% for the quarter. Nikkei gained 0.1%, after climbing 7% for the month and 13% for the quarter.

Chinese blue chips were flat, while Hang Seng slid 0.2%.

Depending on whether funds are mandated to rebalance monthly or quarterly, the rebalancing flows should result in selling in U.S. and Japanese indices, said Tony Sycamore, analyst at IG.

While the German and Australian stock markets are likely to be the beneficiaries of rebalancing buying, he added.

In foreign exchange markets, the dollar shed 0.1% to 148.77 yen, having added 0.9% overnight.

The yen was the biggest loser overnight, hitting an over one-year low on the euro at 174.78, just above a record low of 175.9. It also hit an all-time trough on the Swiss franc at 187.30 yen.

The Swiss National Bank is expected to hold its policy rate at zero later in the day, its first pause since late 2023.

In commodity markets, spot gold prices were flat at $3,739 an ounce, having dropped 0.7% overnight in the face of a strong dollar.

Brent oil futures have continued to find support in the $65‑70/bbl range despite market forecasts of a deep oversupply in Q4 2025 and Q1 2026, said Vivek Dhar, a commodities strategist at the Commonwealth Bank of Australia.