Japanese markets opened higher but saw early gains erased on Friday as Tokyo's Nikkei 225 index briefly reached a record high, anticipating a key US jobs report. The broader Topix index also surpassed its previous peak from 1989. European markets rose on Thursday amid reassuring electoral outcomes in the UK and France.

Analyst Takuma Ikemoto from the Tokai Tokyo Intelligence Lab emphasized the significance of the Topix breaking its own record, highlighting Japan's market strength and enhanced profitability among companies.

The yen continued to strengthen against the dollar after hitting its lowest level in nearly 40 years. Samsung Electronics' upbeat forecast of second-quarter profits, driven by increased chip prices and demand for generative AI, boosted Seoul's market but weighed on Hong Kong and mainland China stocks due to EU tariffs on Chinese electric car imports.

In Europe, attention was on pivotal elections in the UK and France. The return of Britain's Labour Party ended a 14-year Tory rule, bolstering the pound. In France, efforts to block the far-right boosted the Euro and invigorated European markets, although concerns lingered over potential political deadlock.

US markets were closed for the July 4 holiday, while expectations for softer US labor market data supported sentiment for potential Federal Reserve interest rate cuts. Key market figures showed fluctuations, with Tokyo's Nikkei 225 down 0.3 percent, Hong Kong's Hang Seng Index down 1.0 percent, and Shanghai's Composite down 1.2 percent. Major currencies and oil prices also experienced minor changes.

Overall, global markets navigated geopolitical developments and economic data, with investors monitoring central bank policies and market dynamics closely.