Asian stocks edge lower as yen, South Korea’s Kospi advance

Published Tue, Sep 8, 2026 · 11:15 AM

ASIAN stock markets opened mostly lower as Middle East tensions pushed up oil prices, adding to inflation concerns and keeping investors wary about further monetary policy tightening. The yen advanced to the strongest since February.

The MSCI Asia-Pacific Index of regional equities dropped 0.2 per cent with benchmark gauges in Japan and Australia declining, while South Korea’s rose.

Stock futures for the Nasdaq 100 index fluctuated in early Asian trade after US financial markets were shut on Monday for a public holiday.

Among the main moves in markets, S&P 500 futures fell 0.1 per cent as at 9.04 am Tokyo time. Hang Seng futures dropped 0.3 per cent, Japan’s Topix retreated 1.1 per cent and Australia’s S&P/ASX 200 declined 0.2 per cent.

Brent was little changed on Tuesday (Sep 8) after briefly topping US$98 a barrel in the previous session.

Iran said a deal with Oman to manage shipping through the Strait of Hormuz is imminent, raising questions over how the US will respond after striking Iranian vessels over the weekend. Teheran also warned ships face the risk of attack near Oman’s coastline.

The yen advanced 0.4 per cent to 153.73 per US dollar after rallying 1.2 per cent on Monday. The currency has now surpassed the peak it reached after coordinated intervention by Japan and the US.

The Bloomberg dollar index slipped 0.1 per cent in early Tuesday trade. Copper climbed to an all-time high on Monday.

Higher energy prices are adding to inflation concerns as investors weigh the prospect of tighter monetary policy. A packed week of US data culminates with Friday’s inflation report, which may prove pivotal to whether the US Federal Reserve raises interest rates or stays on hold.

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“Markets will be adjusting their positioning heading into the Fed’s blackout period,” said Geoff Yu, a senior macro strategist at BNY.

“The risk is the Fed turning hawkish and that will be reflected in equities. Bond markets will remain nervy and we remain focused on fixed income volatility.”

In Asia, the yen will remain in the spotlight after the currency abruptly extended gains on Monday, rising as much as 1.4 per cent to 154.06 per US dollar in London trading.

There was no clear catalyst, with some traders pointing to thin liquidity during the US holiday and others citing a break through the key 155 level.

The yen began rallying last week as growing bets on Bank of Japan interest rate hikes triggered a sharp shift in sentiment towards the currency.

In commodities, copper surged to a record on the London Metal Exchange, extending a weeks-long rally driven by expectations that US President Donald Trump will broaden US tariffs to imports of refined metal. Gold advanced in early Tuesday trading.

While US economic data will likely provide the biggest catalyst for markets this week, earnings will also help shape the outlook for key equity sectors.

Results from Oracle and Adobe on Thursday will offer a fresh read on artificial intelligence infrastructure spending and the threat the technology poses to software makers.

“As corporate profits remain on an uptrend, any bout of weakness in equity prices would leave them cheaper,” wrote JPMorgan Chase strategists, led by Mislav Matejka. “We believe one should continue using the dips to add.” BLOOMBERG