Asian markets trade mixed amid Middle East tensions, earnings outlook

October 12, 2026 (MLN): Asian markets traded mixed on Monday as investors assessed escalating tensions in the Middle East, potential disruptions to energy supplies, and expectations for a busy week of corporate earnings and inflation data.

South Korea’s Kospi fell 3.03%, while the small-cap Kosdaq declined 0.67% in earlier trading. Australia’s S&P/ASX 200 gained 0.74%, while Hong Kong’s Hang Seng Index rose 0.17%. Mainland China’s CSI 300 slipped 0.15%, while Japanese markets remained closed for a public holiday, according to CNBC.

U.S. stock futures advanced after Wall Street’s major indexes recorded weekly gains, supported by strength in technology shares despite elevated oil prices and bond yields. Futures tied to the S&P 500 climbed 0.32%, Nasdaq 100 futures gained 0.41%, and Dow Jones Industrial Average futures rose 196 points, or 0.38%.

Geopolitical developments remained in focus after U.S. President Donald Trump said he was considering joining Saudi Arabia in its fight against Iran-backed Houthi forces in Yemen. The comments followed another deadly attack on Riyadh’s international airport, raising concerns over a possible escalation in regional tensions.

Oil prices moved lower in Asian trading on Monday following Trump’s announcement of an energy ceasefire between Russia and Ukraine over the weekend. However, Brent crude futures remained above $104 per barrel, while U.S. Treasury yields continued to draw attention after the 10-year yield reached levels last seen in 2002.

Investors are looking to the third-quarter earnings season to provide support for equities amid geopolitical uncertainty and rising business costs.

According to FactSet’s John Butters, S&P 500 companies are expected to report earnings growth of 29.6% for the quarter, marking the fourth consecutive quarter of growth above 25%, driven largely by investment in artificial intelligence data centers.

Market participants will also closely examine corporate guidance for indications of how companies are managing higher fuel and borrowing costs, maintaining profit margins, and sustaining future growth.

The earnings calendar will gather momentum this week, with Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo scheduled to report results.

Investors will also monitor key U.S. inflation releases, with September consumer price index data due Wednesday and producer price index figures scheduled for Thursday. The reports could provide further insight into inflationary pressures and the outlook for monetary policy.

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