Asian markets open mixed, oil prices slide following Trump’s Iran decision

August 03, 2026 (MLN): Asian markets started the week on a mixed footing on Monday as oil prices retreated after U.S. President Donald Trump said he had called off a planned military strike on Iran, easing immediate concerns over supply disruptions in the Middle East.

Japan led regional declines, with the Nikkei 225 falling 1.43% and the Topix losing 1.45%. South Korea's Kospi dropped 4.57% at the open, while the Kosdaq slipped 1.67%.

Australia's S&P/ASX 200 was down 0.36%, although Hong Kong's Hang Seng futures pointed to a slightly firmer open, according to CNBC.

Investor sentiment improved after Trump announced that a planned attack on Iran had been cancelled following requests from Tehran and neighboring countries.

He said the understanding would include the immediate reopening of the Strait of Hormuz and an end to Iran's nuclear threat.

The easing of geopolitical tensions pushed oil prices sharply lower. Brent crude declined $3.52 to $84.41 per barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.49 to $81.18 per barrel.

U.S. stock futures moved higher in overnight trading, with Dow Jones Industrial Average futures gaining around 200 points, or 0.4%. S&P 500 futures advanced 0.5%, while Nasdaq-100 futures climbed 0.8%, as investors looked ahead to a busy week of corporate earnings and key economic data.

Wall Street ended Friday's session in positive territory, with the Dow Jones Industrial Average rising 0.53% to 52,485.03, the S&P 500 adding 0.7% to 7,489.72, and the Nasdaq Composite gaining 1% to close at 25,373.85.

Market participants are now focusing on whether the earnings-driven rally can be sustained.

While major technology companies largely delivered solid quarterly results, investors are increasingly demanding clearer evidence that heavy artificial intelligence spending will translate into stronger profits.

Attention this week will shift to earnings from companies including McDonald's, Kraft Heinz, Costco Wholesale, Walt Disney, Palantir, and Advanced Micro Devices, alongside a series of U.S. labor market reports.

The week's key economic event will be Friday's U.S. nonfarm payrolls report.

Economists expect the U.S. economy to have added about 87,500 jobs in July, compared with 57,000 in June, while the unemployment rate is projected to edge up to 4.3% from 4.2%.

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