Asian markets mixed on rising oil prices, Iran conflict concerns

September 08, 2026 (MLN): Asian markets mostly declined on Tuesday as rising oil prices and persistent geopolitical tensions in the Middle East weighed on investor sentiment, while traders also monitored upcoming central bank meetings and inflation data.

Japan’s Nikkei 225 fell 0.95%, while the broader Topix index declined 1.14%. Australia’s S&P/ASX 200 slipped 0.22%, and Hong Kong’s Hang Seng Index dropped 0.65%.

In contrast, South Korea’s Kospi advanced 0.75%, with the Kosdaq gaining 0.46%, while mainland China’s CSI 300 moved higher, according to CNBC.

Market sentiment remained cautious after oil prices climbed to six-week highs following fresh exchanges between the United States and Iran over the weekend, raising concerns that the conflict could continue for an extended period.

Oil extended gains for a third consecutive session in Asian trading, with Brent crude rising 1.1% to $97.31 per barrel and U.S. West Texas Intermediate (WTI) crude advancing 1.3% to $92.66 per barrel.

Higher energy prices have increased concerns over inflation, pushing global bond yields upward. The benchmark U.S. 10-year Treasury yield recently touched its highest level since November 2023, while the two-year yield reached its strongest level since January 2025.

Investors are also focusing on a series of upcoming central bank meetings, particularly the U.S. Federal Reserve’s policy decision next week.

Market participants are currently pricing in a 60% probability of a 25-basis-point interest rate increase, with U.S. wholesale and consumer inflation data due later this week expected to influence expectations.

Meanwhile, trade tensions between the United States and Canada also remained in focus after Canadian retaliatory tariffs on approximately $20bn worth of U.S. goods took effect on Tuesday.

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