Asia markets slip into mixed territory, oil climbs

July 09, 2026 (MLN): Asian equity markets traded mixed on Thursday as renewed tensions between the United States and Iran lifted oil prices and kept investors cautious over the potential impact on global inflation and economic growth.

Japan led regional gains, with the Nikkei 225 rising 1.88% and the Topix adding 0.36%. South Korea rebounded sharply after the previous session's selloff, with the Kospi climbing 2.88% and the small-cap Kosdaq advancing 3.67%.

In Greater China, Hong Kong's Hang Seng Index edged up 0.16%, while mainland China's CSI 300 traded little changed. Australia's S&P/ASX 200, however, declined 0.69%, showing cautious sentiment, according to CNBC.

Investor attention remained focused on escalating geopolitical risks after the U.S. Central Command confirmed fresh military strikes on Iran in response to attacks on commercial shipping in and around the Strait of Hormuz.

Adding to market uncertainty, U.S. President Donald Trump indicated he was no longer interested in pursuing negotiations with Iran and earlier declared that the ceasefire between the two countries was "over" following another round of attacks in the Middle East.

The renewed conflict pushed crude oil prices higher, with U.S. benchmark West Texas Intermediate (WTI) crude gaining nearly 1%, raising concerns over potential supply disruptions through one of the world's key energy shipping routes.

The rise in oil prices also influenced U.S. markets overnight. The Dow Jones Industrial Average fell 576.76 points, or 1.1%, while the S&P 500 slipped 0.28% as higher energy prices weighed on investor sentiment.

In contrast, the Nasdaq Composite gained 0.2%, supported by strength in Nvidia and other semiconductor stocks.

Meanwhile, U.S. stock futures edged higher in early Thursday trading. S&P 500 futures rose 0.13%, Dow futures gained around 70 points, or 0.1%, and Nasdaq 100 futures advanced 0.1%, suggesting a modest recovery after the previous session's decline.

Market participants remain concerned that sustained increases in energy prices could revive inflationary pressures, potentially delaying interest rate cuts by the U.S. Federal Reserve.

Minutes from the Fed's June policy meeting highlighted policymakers' cautious stance, with officials seeking greater confidence that inflation is moving sustainably toward the central bank's target before easing monetary policy.

Investors will also monitor the latest U.S. weekly jobless claims data and existing home sales figures later on Thursday, while PepsiCo is scheduled to release its quarterly earnings before the opening bell.

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