Asian markets trade mixed amid escalating Middle East tensions

July 20, 2026 (MLN): Asian markets opened on a mixed note on Monday as investors assessed escalating geopolitical tensions in the Middle East and looked ahead to a busy week of corporate earnings.

South Korea's Kospi fell 0.74% at the open, while the Kosdaq declined 1.66%. Australia's S&P/ASX 200 gained 0.34%, whereas Japanese markets remained closed for a public holiday.

Hong Kong's Hang Seng index futures edged higher to 24,602, compared with Friday's close of 24,562.24, according to CNBC.

Investor sentiment remained under pressure after U.S. equities ended last week lower. The S&P 500 declined 1.6%, the Nasdaq Composite dropped 2.9%, and the Dow Jones Industrial Average lost 0.9%.

The VanEck Semiconductor ETF also extended its weakness, falling nearly 9% for its third weekly decline in the past four weeks.

Market participants continued to monitor developments in the Middle East after the United States carried out a ninth consecutive day of strikes against Iran, adding to concerns over regional stability and the security of commercial shipping through the Strait of Hormuz.

The U.S. Central Command also reported that a third American service member was killed during the recent fighting, bringing the U.S. death toll since the conflict began in February to 17.

Oil prices climbed in response to the latest developments. U.S. West Texas Intermediate (WTI) crude rose about 3% to trade above $85 per barrel, while Brent crude advanced roughly 3% to trade above $91 per barrel.

Investors are also preparing for a series of major U.S. corporate earnings this week, with Alphabet and Tesla scheduled to report on Wednesday, followed by Intel on Thursday.

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