Asian markets set for subdued open amid rising global bond yields

August 24, 2026 (MLN): Asian markets were set for a muted opening on Monday as investors remained cautious over the continued rise in global bond yields, while lingering Middle East tensions and concerns over inflation further weighed on sentiment.

Japan's Nikkei 225 futures pointed to a largely flat start, with the Chicago contract trading at 65,970 and the Osaka contract at 66,010, compared with the index's previous close of 66,016.36, according to CNBC.

Hong Kong's Hang Seng Index futures stood at 25,895, below the previous close of 26,009.46, while futures for Australia's S&P/ASX 200 were trading at 9,028 against the index's previous close of 9,058.90.

Asian equities had already come under significant pressure in the previous session. Japan's Nikkei 225 declined 0.57%, while the broader Topix gained 0.22%. South Korea's Kospi dropped 3.47%, although the Kosdaq advanced 0.80%.

Hong Kong's Hang Seng Index fell 2.09%, while mainland China's CSI 300 declined 1.26%.

The cautious mood followed a weak week on Wall Street, where elevated Treasury yields continued to pressure equity valuations.

The Dow Jones Industrial Average lost 0.8% for its second consecutive weekly decline, while the S&P 500 and Nasdaq dropped 1.4% and 2%, respectively, ending their three-week winning streaks.

U.S. stock futures also edged lower early Monday, with Dow futures down 18 points, or 0.03%, while S&P 500 and Nasdaq-100 futures declined 0.1% and 0.3%, respectively.

Global bond yields have climbed sharply, with the 30-year U.S. Treasury yield surpassing 5.3% last week and reaching its highest level in nearly two decades. Bond yields in Japan, France and Germany have also risen to multiyear highs.

Meanwhile, geopolitical concerns remained in focus following renewed pressure from the Trump administration on countries continuing business ties with Iran. Investors fear that a prolonged U.S.-Iran conflict could keep oil prices elevated and add further inflationary pressures.

Markets will closely watch the release of the July Personal Consumption Expenditures price index on Wednesday, followed by the Federal Reserve's annual Jackson Hole symposium, where Chairman Kevin Warsh is expected to speak.

The technology sector will also remain under focus, with Nvidia scheduled to report earnings on Wednesday and Marvell Technology on Thursday, while reports of potential price increases for Nvidia's Vera Rubin and Blackwell chip-based servers could further draw investor attention.

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