Asia Stocks Mixed After US Tech Rebound; Markets Await Fed Signals

Here’s your quick read to start the day: a chatty, no-fuss look at overnight moves, the big story, what’s on the docket, and the tickers you need to watch.

By Nandinee Keluskar

August 28, 2026 at 3:24 AM IST

Global Mood: Cautiously Risk-on
Drivers: Qatar Mediates, Iran Sets Hormuz Conditions

Asian stock markets traded mixed on Friday, with Japan’s Nikkei 225 rising 0.41% and Australia’s S&P/ASX 200 gaining 0.28%, while South Korea’s Kospi slipped 0.60%.

The mixed session followed a strong rebound in US technology stocks, with the tech sector, S&P 500 and Nasdaq Composite posting their strongest gains since August 4. US stock futures edged lower overnight as investors assessed corporate earnings and awaited a speech by Fed policymaker Warsh for clues on the interest-rate outlook. Gold remained near $4,600 an ounce and was on track for its strongest monthly advance since 1999, as markets weighed the path of US monetary policy.

THE BIG STORY
Qatar's prime minister visited Tehran Thursday in the most substantive diplomatic engagement in weeks, pressing for a return to dialogue and discussing a proposed temporary Iranian-Omani shipping corridor through Hormuz alongside a joint mine-clearing project.

Iran's top security official Rezaei told the Qatari delegation Tehran was preparing a formal list of conditions for reopening the strait - a procedural step mediators had specifically requested — and confirmed an in-principle agreement with Oman on a designated central shipping channel, pending US compliance.

Trump responded by telling reporters Washington was "not looking to meet or anything" with Iran, while the White House framed the standoff as a two-phase campaign: "Operation Epic Fury" to destroy Iran's military followed by "Operation Economic Outcast" to destroy its economy. Iran warned it would strike US military and economic interests if Washington engaged in further "mischief," and called on Gulf neighbours to stop allowing their territory to be used for US operations against Tehran.

Six months into a war launched on February 28, the strategic picture is one of deep stalemate. Iran's conventional military has been severely degraded and its supreme leader killed, but Tehran retains enough missile and drone capability to hold Hormuz hostage and strike Gulf states hosting US forces.

The IMO has recorded 70 incidents in the strait, killing 19 seafarers. Trump faces record-low approval ratings ahead of November midterms, with high energy prices the central domestic pressure point, yet aggressively enforcing sanctions against Iran's main trading partners China and India carries its own significant economic and diplomatic risks — particularly with a Trump-Xi summit scheduled for late September.

Data Spotlight
ECB minutes from the July meeting showed all policymakers agreed to hold rates steady following June's hike, though some said they would not have opposed another increase, with the July pause explicitly not signalling an end to the tightening cycle. Upside inflation risks from West Asia developments and the Russia-Ukraine war were flagged, with another hike seen as likely unless the medium-term inflation outlook improves significantly.

Initial jobless claims fell 4,000 to 203,000 in the third week of August, below expectations of 208,000 and a second consecutive weekly decline, maintaining the run of low claim counts since July's near 60-year low. Continuing claims also fell to 1,778,000, below expectations, reinforcing labour market resilience despite July's weak payroll print.

The US goods trade deficit widened sharply to $118.8 billion in July from $101.4 billion in June, the largest since March 2025, as imports rose 3.7% to a 16-month high driven by capital goods. Exports fell 2.9% to their lowest since January, marking a third consecutive monthly decline led by lower industrial supplies and food shipments.

Takeaway: A sharply wider US goods trade deficit and hawkish ECB minutes signal that both trade imbalances and inflation pressures remain persistent, even as resilient US jobless claims offer some labour market reassurance. The ECB's clear signal that further tightening remains likely keeps pressure on global bond markets and reinforces a higher-for-longer rate environment on both sides of the Atlantic.

WHAT HAPPENED OVERNIGHT

US stocks rally as Nvidia's blowout forecast reignites AI trade ahead of Warsh's Jackson Hole speech

The Dow rose 0.20%, S&P 500 gained 0.72%, and Nasdaq surged 1.57%, with the S&P 500 tech sector leading all sectors with a 3.4% gain after Nvidia's results.
Nvidia jumped 8.7% after forecasting 70% revenue growth next year, well above the 40% consensus estimate, with Morgan Stanley saying the company will "continue to knock down barriers to higher growth."
The Philadelphia Semiconductor Index gained 2.3%, while Salesforce surged 22.6% and CrowdStrike climbed 20.5% after both raised annual forecasts, calming fears that AI tools could upend traditional software.
Brent crude jumped over $2 after the WSJ reported Trump has no interest in returning to the June Iran MOU terms, keeping geopolitical risk premium elevated.
Two Fed officials reiterated inflation concerns at Jackson Hole, while Wednesday's hotter-than-expected PCE muddied the policy outlook ahead of Warsh's Friday speech.
Weekly jobless claims fell for a second straight week to a one-month low, signalling a stable labour market.

US Treasury yields rise for a second session as hotter PCE reinforces year-end rate hike expectations

The 10-year yield climbed to 4.66% after July PCE rose 0.2% month-on-month, above the 0.1% estimate, reversing June's decline, with annual inflation at 3.7% versus the 3.6% forecast.
Warsh's Jackson Hole speech on Friday is the next key focus, though he is not expected to offer a clear September policy signal.
Stanley Druckenmiller reiterated his view that the Treasury's buyback plan undermines market credibility and misses an opportunity for meaningful debt reform.

US Dollar holds above 99 as stronger PCE reinforces Fed hike expectations ahead of Jackson Hole

The dollar index extended Wednesday's gains after July PCE rose 0.2% month-on-month, above the 0.1% estimate, with annual inflation at 3.7% versus the 3.6% forecast.
Warsh's Jackson Hole speech on Friday is the next key focus, though a clear September policy signal is unlikely.
Oil prices fell further on diplomatic progress in West Asia, easing near-term inflation concerns and capping the dollar's upside.
Broader US fiscal risks from the Treasury's expanded buyback programme continued to weigh on dollar sentiment at the margin.

Oil snaps three-session losing streak, settling up 2% as Trump rules out return to June Iran MOU terms

Brent settled at $89.70/bbl, up 2.1%, and WTI at $83.53, up 1.6%, as the WSJ reported the Trump administration has repeatedly told mediators it has no interest in reviving the June agreement.
Trump told reporters the US does not want to speak to Iran and is focused on economic punishment, while Bessent suggested the "toughest sanctions in history" announced Monday would reduce the need for new military operations.
Qatar's PM visited Tehran on Thursday to relaunch diplomatic talks on the eve of the war's six-month anniversary, though Iran's top security official warned of retaliation against US interests if Washington caused "mischief" during the talks.
Hormuz flows improved slightly to 10 commodity vessels on Wednesday, up from recent lows but still below the 10-day average of 15, with nuclear program disputes and Iran's Hormuz leverage seen keeping uncertainty prolonged.
Kuwait's Al-Zour refinery restarted all three crude units at 60% capacity as of August 19, having been attacked by Iranian drones in May.
Russia warned it could strike British military targets inside and outside Ukraine following Ukrainian attacks using British-supplied long-range missiles, though Trump said Putin would not attack a NATO country.

Day’s Ledger*
Economic Data

India July Industrial Production
India FX Reserves, USD
Canada April-June GDP
US August Michigan Consumer Sentiment

Corporate Actions

Max Estates Limited and One Point One Solutions to consider fundraising

Policy

US Fed Governor Warsh Speaks
ECB's Schnabel Speaks
US Jackson Hole Symposium

Tickers to Watch

WIPRO expands Google Cloud partnership to roll out Gemini Enterprise internally and for customers; to equip over 10,000 AI-certified specialists with the technology.
LENSKART block deal launched with Alphawave likely to sell 1.2% stake; deal size at 13.13 billion rupees, floor price at 630 rupees/share, up to 1.7% discount to current market price.
NBCC (INDIA) secures five work orders worth 1.3427 billion rupees (excl. GST) for school campuses, an education facility and a Canara Bank building, awarded by Kendriya Vidyalaya Sangathan, Odisha SCERT and Canara Bank.
BHARAT PETROLEUM CORPORATION CMD Sanjay Khanna says volatility will remain a feature of the energy industry, underscoring the need for a diversified, resilient business, at BPCL's 73rd AGM.
RPP INFRA PROJECTS loses a 2.0589 billion rupee contract for proposed Global Sports City in Chennai after the Tamil Nadu government decides to restructure and redesign the project.
ADANI POWER enters a share purchase agreement with AdaniConneX to sell the entire stake in subsidiary Chandenvalle Infra Park for 535.69 million rupees, subject to closing-date adjustments.
NEW INDIA ASSURANCE COMPANY receives income tax refund of 781.39 million rupees (incl. 59.63 million rupees interest) for AY2022-23, following grievance resolution.
ZEE ENTERTAINMENT ENTERPRISES in focus after NCLT approves Dr Subhash Chandra's repayment plan in his personal insolvency resolution.
HDFC Bank explores appeal before NCLAT.
LIFE INSURANCE CORPORATION OF INDIA subscribes to 5 lakh NCDs of Bajaj Finance (face value 1 lakh rupees each), aggregating 50 billion rupees.
RVNL re-appoints Rakesh Bhalla as Additional/Independent Director effective August 25, 2026; originally appointed August 13, 2026, with tenure set to end at AGM on same date.

Must Read

(*Compiled from various media sources)

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