Asian Markets Track Wall Street Lower

(RTTNews) - Asian stock markets are trading mostly lower on Monday, following the broadly negative cues from Wall Street on Friday, dragged by South Korea, Japan and Hong Kong, amid spiking rising crude oil prices and global bond yields. Market sentiment was soured on renewed US-Iran tensions after US forces struck two Iranian rocket launchers near the Strait of Hormuz over the weekend, killing and wounding several Iranian fighters and civilians. Asian markets closed mixed on Friday.

Iran said on Sunday that it had launched an attack on US air bases in Jordan in retaliation, heightening fears of further disruptions to shipping through the key waterway.

Markets also react to US Fed Chair Kevin Warsh's first speech at the Jackson Hole economic symposium, which was seen as having a hawkish tilt. He remarked that the Fed may have work to do, hinting at rate hikes.

Following Warsh's remarks, the chances the Fed will raise interest rates by a quarter-point next month have jumped to 57.7 percent from just 35.4 percent, according to CME Group's FedWatch Tool.

The Australian stock market is slightly lower on Monday, reversing some of the gains in the previous session, following the broadly negative cues from Wall Street on Friday. The benchmark S&P/ASX 200 index is staying below the 9,100.00 level, with weakness in mining and technology stocks nearly offset by gains in energy and financial stocks.

The benchmark S&P/ASX 200 Index is losing 2.90 points or 0.03 percent to 9,089.40, after hitting a low of 9,055.80 earlier. The broader All Ordinaries Index is down 10.70 points or 0.12 percent to 9,283.60. Australian stocks closed notably higher on Friday.

Among the major miners, Fortescue is slipping almost 1 percent, Mineral Resources is declining more than 2 percent, Rio Tinto is down more than 1 percent and BHP Group is losing almost 2 percent.

Oil stocks are mostly higher. Beach energy and Santos are gaining more than 1 percent each, while Woodside Energy is edging up 0.2 percent. Origin Energy is edging down 0.3 percent.

Among tech stocks, Afterpay owner Block and WiseTech Global are losing more than 1 percent each, while Appen and Zip are declining more than 2 percent each. Xero is slipping more than 3 percent.

Gold miners are mostly lower. Resolute Mining is down more than 3 percent, Newmont is losing more than 2 percent and Genesis Minerals is slipping almost 4 percent, while Northern Star Resources and Evolution Mining are sliding more than 4 percent each.

Among the big four banks, Commonwealth Bank and Westpac are gaining almost 2 percent each, while National Australia Bank and ANZ Banking are adding more than 1 percent each.

In economic news, Australia's business inventories fell 0.2 percent on quarter in the second quarter of 2026, reversing an upwardly revised 0.7 percent increase in the previous three-month period. On a yearly basis, business inventories fell 0.4 percent, slipping further from a downwardly revised 0.2 percent decline in the first quarter of 2026.

Total private sector credit in Australia was up 0.6 percent on month in July, the Reserve Bank of Australia said on Monday - missing forecasts for 0.7 percent and down from 0.8 percent in June. On a yearly basis, total private sector credit was up 8.4 percent.

Company gross operating profits in Australia were up a seasonally adjusted 1.8 percent on quarter in the second quarter of 2026, the Australian Bureau of Statistics said on Monday. That missed expectations for an increase of 2.0 percent following the 1.5 percent decline in the three months prior. On a yearly basis, profits were up 7.4 percent.

In the currency market, the Aussie dollar is trading at $0.717 on Monday.

The Japanese stock market is sharply lower on Monday, reversing the gains in the previous session, following the broadly negative cues from Wall Street on Friday. The Nikkei 225 is falling well below the 65,400 level, with weakness in index heavyweights, financial and technology stocks partially offset by gains in automaker stocks.

The benchmark Nikkei 225 Index closed the morning session at 65,361.60, down 1,043.96 points or 1.57 percent, after hitting a low of 64,832.10 earlier. Japanese shares ended modestly higher on Friday.

Market heavyweight SoftBank Group is losing almost 3 percent and Uniqlo operator Fast Retailing is flat. Among automakers, Honda is gaining almost 1 percent and Toyota is adding more than 1 percent.

In the tech space, Advantest is tumbling almost 7 percent, while Tokyo Electron and Screen Holdings are losing almost 4 percent each.

In the banking sector, Sumitomo Mitsui Financial, Mitsubishi UFJ Financial and Mizuho Financial are edging down 0.1 to 0.5 percent each.

The major exporters are mostly lower. Mitsubishi Electric is losing almost 3 percent, while Canon and Panasonic are edging down 0.4 percent each. Sony is gaining almost 1 percent.

Among the other major losers, Mitsubishi Materials is plunging almost 6 percent and Japan Steel Works is tumbling more than 5 percent, while Lasertec and Disco are sliding almost 5 percent each. Sumco is slipping more than 4 percent, while Ibiden, Mitsubishi Heavy Industries, Murata Manufacturing and Renesas Electronics are losing almost 4 percent each. Renesas Electronics, Resonac Holdings and Dowa Holdings are down more than 3 percent each.

Conversely, Kansai Electric Power is jumping almost 6 percent. Tokai Carbon is surging more than 5 percent, JTEKT is advancing more than 4 percent and Sumitomo Pharma is gaining almost 4 percent.

In economic news, retail sales in Japan grew by 4 percent on year in July 2026, exceeding market expectations for a 3 percent rise and accelerating from an upwardly revised 0.6 percent gain in the previous month. The latest reading also marked the fourth consecutive month of growth in retail activity. On a monthly basis, retail sales rose by 2.4 percent in July, recovering from a downwardly revised 3.9 percent decline in June, which was the steepest drop since April 2021.

Industrial production in Japan was up a seasonally adjusted 0.1 percent on month in July, the Ministry of Economy, Trade and Industry said on Monday. That beat expectations for a decline of 0.7 percent following the 1.9 percent gain in June. On a yearly basis, production was up 4.1 percent. Upon the release of the data, the METI maintained its assessment of industrial production, saying that it continues to fluctuate indecisively.

In the currency market, the U.S. dollar is trading in the higher 159 yen-range on Monday.

Elsewhere in Asia, South Korea is slipping 1.7 percent, while Taiwan and Hong Kong are down 1.2 and 1.0 percent, respectively. China and Indonesia are down 0.2 percent each. New Zealand and Singapore are up 0.6 and 0.3 percent, respectively. Malaysia is closed for National Day.

On Wall Street, stocks moved mostly lower over the course of the trading day on Friday after seeing considerable volatility early in the session. The major averages all moved to the downside on the day, partly offsetting the strength seen in the previous session.

The Nasdaq slid 138.93 points or 0.5 percent to 26,402.42 and the S&P 500 fell 19.23 points or 0.3 percent to 7,711.76. The narrower Dow posted a more modest loss, edging down 9.45 points or less than a tenth of a percent to 53,559.99.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index jumped by 1 percent, the German DAX Index advanced by 0.8 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

Crude oil prices edged lower Friday as the shift by the U.S. to pressure Iran economically rather than by force dampened the risk premium for crude oil. West Texas Intermediate crude for October delivery eased $0.13 or 0.16 percent at $83.40 per barrel.