Asian markets open mixed following Wall Street rally

July 16, 2026 (MLN): Asian markets were poised for a mixed start to trading on Thursday as investors assessed persistent geopolitical tensions in the Middle East alongside expectations of fresh US economic data that could shape the Federal Reserve's interest rate outlook.

Japan's benchmark Nikkei 225 was expected to open lower, with Chicago futures indicating a level of 67,890 compared with Wednesday's close of 68,751.51.

Hong Kong's Hang Seng Index was projected to open higher after futures traded at 24,829, above its previous close of 24,681.10, according to CNBC.

Meanwhile, Australia's S&P/ASX 200 was also expected to edge lower, with futures at 8,821 against Wednesday's closing level of 8,841.10.

Investor sentiment remained cautious as markets monitored developments between the United States and Iran.

US President Donald Trump said Iran had showed a willingness to engage in negotiations, although military operations continued with fresh US strikes on Iranian targets.

Tehran also maintained that it was prepared for further confrontation, while analysts suggested there were few signs that the conflict was nearing a diplomatic resolution.

Wall Street ended the previous session in positive territory, supported by softer US inflation data, easing Treasury yields and solid corporate earnings.

The Dow Jones Industrial Average gained 150.91 points, or 0.3%, to close at 52,659.18. The S&P 500 advanced 0.4% to 7,572.43, while the Nasdaq Composite climbed 0.6% to finish at 26,269.23.

US equity futures also pointed to a steady opening on Thursday, with futures linked to the Dow, S&P 500 and Nasdaq 100 each trading around 0.1% higher in early dealings.

The latest US producer price index came in below market expectations, reinforcing hopes that inflationary pressures are easing.

The data, coupled with lower Treasury yields and stronger-than-expected earnings from major financial institutions, boosted investor confidence and strengthened expectations that the Federal Reserve will leave interest rates unchanged in the near term.

Michael Kantrowitz, Chief Investment Strategist and Head of Portfolio Strategy at Piper Sandler, said a stable or declining interest-rate environment would be essential for broader gains in equities.

He added that relatively subdued employment conditions could help keep borrowing costs under control and reduce the likelihood of additional rate hikes.

Investors are now awaiting US retail sales and weekly jobless claims data due later on Thursday for further clues on the health of the world's largest economy.

Corporate earnings will also remain in focus, with UnitedHealth scheduled to report before the opening bell and Netflix set to release its quarterly results after the market closes.

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