Asian markets set for muted open amid Middle East tensions

August 11, 2026 (MLN): Asian markets were set for a mixed-to-muted opening on Tuesday as investors assessed ongoing developments in the Middle East, with elevated oil prices adding to concerns over inflation and global economic growth.

Hong Kong’s Hang Seng futures stood at 25,966, slightly above the index’s previous close of 25,937.49. Australia’s S&P/ASX 200 futures were at 9,178, compared with Monday’s close of 9,232.6, while Japanese markets remained closed for a public holiday, according to CNBC.

Overnight, U.S. stock futures were largely subdued as investors weighed indications that efforts to reopen the Strait of Hormuz could make progress against continued uncertainty over a broader resolution between Washington and Tehran.

Dow Jones futures slipped 37 points, while S&P 500 futures edged lower and Nasdaq 100 futures were little changed.

The cautious sentiment followed a flat session on Wall Street, with the S&P 500 ending Monday little changed as uncertainty surrounding the Middle East conflict continued to influence investor sentiment.

Iran has indicated that discussions with Oman over reopening the Strait of Hormuz are advancing, although Tehran remains reluctant to resume direct talks with the United States until certain conditions are addressed.

Oil prices surged on Monday amid renewed uncertainty surrounding the conflict. West Texas Intermediate crude futures rose 5.1% to settle at $82.13 per barrel, while Brent crude gained 5% to $87.72 per barrel.

Markets are now turning their attention to key U.S. inflation figures, with the July consumer price index due Wednesday and producer price data scheduled for Thursday. The readings could influence expectations for the Federal Reserve’s interest-rate path following a weaker-than-expected July employment report.

Rising oil prices have renewed inflation concerns at a time when slowing job growth is raising questions over consumer spending and the broader U.S. economic outlook.

Market expectations for a September Federal Reserve rate hike have also eased following the weak jobs data. Fed funds futures currently imply around a 50% probability of a September rate hike, down from 67% a week earlier, according to CME Group’s FedWatch tool.

Investors will also monitor corporate earnings on Tuesday, with Cardinal Health and On Holdings scheduled to report before the U.S. market opens, while Cava Group, CoreWeave and Super Micro Computer are due to release results later in the day.

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