Asian markets trade mixed amid renewed Middle East tensions

September 21, 2026 (MLN): Asian markets traded mixed in early Monday trading, as renewed tensions in the Middle East weighed on investor sentiment, while Japan’s markets remained closed for a public holiday.

South Korea’s Kospi rose 0.85% at the open, while the small-cap Kosdaq gained 0.43%. Australia’s S&P/ASX 200, however, declined 0.49%, according to CNBC.

Hong Kong’s Hang Seng index was up 0.35%, while mainland China’s CSI 300 advanced 0.64%. Futures for the Hang Seng stood at 24,678, compared with its previous close of 24,750.78, while S&P/ASX 200 futures were at 8,711 against Friday’s close of 8,731.20.

Market sentiment remained cautious following fresh developments in the Middle East over the weekend.

Iran-backed Houthis attacked Saudi Arabia with missiles and drones on Saturday, while the United States warned its citizens to reconsider travel to the Middle East amid renewed threats between Washington and Tehran.

U.S. stock futures edged higher on Sunday night, with S&P 500 futures gaining 0.23%, Nasdaq-100 futures rising 0.27%, and Dow futures adding 0.25%.

The moves followed another weak week on Wall Street, with the Dow Jones Industrial Average falling 1.7% for its third consecutive weekly decline and its worst weekly performance since March. The S&P 500 slipped around 0.1%, while the Nasdaq Composite gained 0.7%.

Investors are also monitoring the impact of elevated energy prices and interest rates. Oil prices remain near $100 a barrel, while the 10-year U.S. Treasury yield is hovering close to 5%.

The Federal Reserve raised interest rates last week for the first time in three years, as policymakers continue to grapple with persistent inflation and elevated bond yields.

Attention is also turning to a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping this week, with tariffs, critical minerals, artificial intelligence and other economic issues expected to feature in discussions. U.S. Treasury Secretary Scott Bessent has already met Chinese Vice Premier He Lifeng ahead of the summit.

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