Asian markets rise, Hormuz uncertainty weighs on global sentiment

August 10, 2026 (MLN): Asian markets opened higher on Monday, extending gains from Wall Street’s record-setting session, while investors remained focused on developments surrounding the Strait of Hormuz and the possibility of a U.S.-Iran agreement.

Japan’s Nikkei 225 gained 0.54%, while the broader Topix edged higher. South Korea’s Kospi advanced 0.53%, with the small-cap Kosdaq rising 1.48%. Australia’s S&P/ASX 200 also climbed 0.54%, according to CNBC.

U.S. equity futures were mixed in early trading. S&P 500 futures slipped 0.2%, while Nasdaq-100 futures added 0.1%. Dow Jones futures declined 99 points, or 0.2%.

Market sentiment was tempered by uncertainty over whether Washington and Tehran are close to reaching an understanding that would allow vessels to resume unrestricted passage through the Strait of Hormuz.

Optimism faded after Iran rejected reports of direct negotiations with the U.S. regarding the reopening of the key shipping route.

Oil prices responded to the uncertainty, with WTI crude rising around 1% to above $79 per barrel.

The conflicting signals from Washington and Tehran have kept investors cautious. U.S. Treasury Secretary Scott Bessent had indicated last week that an agreement could be reached soon, while U.S. President Donald Trump later described discussions with Iran as only “semi-negotiating” and indicated that Washington wanted to maintain economic pressure on Tehran.

Asian markets were also drawing support from Wall Street’s strong performance last week. The S&P 500 closed Friday at a record level after U.S. stocks posted their strongest weekly performance since April.

The latest boost came after U.S. employment data showed an unexpected decline in nonfarm payrolls for July, increasing expectations that the Federal Reserve could keep interest rates unchanged in September.

Markets are now pricing in about a 44% probability of a September rate hike, down from around 67% a week earlier.

Investors are now turning their attention to this week’s U.S. inflation data, with consumer and producer price reports expected to provide further clues about the Federal Reserve’s monetary policy outlook.

Markets will also track corporate earnings from major companies including On Holding, Cava Group, Super Micro Computer and CoreWeave during the week.

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