Asia markets mostly lower on U.S.A, Iran tensions

February 20, 2026 (MLN): Asia markets mostly traded lower on Friday, tracking overnight losses on Wall Street due to weakness in private credit stocks and mounting tensions between the United States and Iran, which also kept oil prices elevated.

Market sentiment remained cautious after U.S. President Donald Trump said he would decide within the next 10 days whether to pursue military action against Tehran, raising concerns about potential supply disruptions in the Middle East, according to CNBC.

Oil prices extended gains on the news, with U.S. crude futures climbing 0.29% to $66.62 a barrel, while global benchmark Brent crude added 0.26% to $71.92.

In Japan, fresh inflation data was assessed showing headline inflation for January fell below the Bank of Japan’s 2% target for the first time in nearly four years.

 The Nikkei 225 declined 1.29%, dragged lower by utilities shares, while the broader Topix index slipped 1.33%. Shares of Sumitomo Pharma were volatile in early trading, rising as much as 6.81% before tumbling more than 11%.

South Korea’s Kospi bucked the regional trend, advancing 1.24%, though the small-cap Kosdaq edged down 0.25%.

Hong Kong’s Hang Seng index fell 1.03%, while mainland Chinese markets remained closed for the Lunar New Year holiday. Australia’s S&P/ASX 200 dipped 0.14%.

Overnight in the United States, losses in private credit and software names weighed on major benchmarks. The Dow Jones Industrial Average fell 0.54%, the S&P 500 declined 0.28%, and the Nasdaq Composite slipped 0.31%.

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