Traders work on the floor of the New York Stock Exchange during morning trading on June 26, 2026 in New York City.
Michael M. Santiago | Getty Images
In Asia, South Korea’s benchmark Kospi pared earlier losses to fall 0.52%. Japan’s Nikkei 225 declined 0.57%. Hong Kong’s Hang Seng Index dropped 0.71%, while the mainland China’s CSI 300 slid 0.81%. Australia’s S&P/ASX 200 was 0.26% lower.
Wall Street is about to wrap up a month of gains, led by the tech sector. The Dow is up 2.1% in August, on pace for its fifth consecutive monthly advance. The S&P 500 and Nasdaq Composite were headed for their first one-month increases since May, up 3% and 4%, respectively. Both the S&P 500 and Dow also reached all-time highs earlier in August.
Tech led the charge this month, with artificial intelligence-linked stocks outperforming. The S&P 500 tech sector is up nearly 6% for the month. Nvidia has climbed more than 8%, while Microsoft and Micron Technology advanced 11% and 13%, respectively.
To be sure, August has still been a turbulent month, as inflation fears sent Treasury yields to multiyear highs. The Treasury Department tried to stem the rout by saying it would increase debt repurchases, but yields along the long end of the curve remain elevated. Federal Reserve Chairman Kevin Warsh also said Friday he’s worried about inflation, noting that, “while this summer’s [inflation] readings were better than expected, they do not tell me that underlying trends have meaningfully improved.”
“Although we doubt this was intended to foreshadow September’s tightening given his distaste for signaling, his hawkish discussion makes a 25bp September hike more likely than not. Given his inflation metrics, our baseline calls for another in December,” wrote Barclays economist Jonathan Millar in a note.
Heightened tensions in the Middle East also led to choppy trading in August. On Sunday, U.S. Central Command confirmed to MS NOW that the U.S. struck two rocket launchers on Iran’s Larak Island.
Crude prices popped in early trading following the attack. U.S. oil traded 2.1% higher at $85.14 per barrel. Brent futures were up 2% at $89.90.
Investors will get more insight into the state of the economy this week, with the August jobs report due Friday morning. Monthly manufacturing and services sector data is also on deck.
European stocks open in mixed territory
European equities were little changed at the open on Monday, with the regional Stoxx 600 index moving marginally lower and no broad consensus movement among sectors.
Energy stocks saw gains as oil prices jumped, with investors monitoring a reignition of hostilities between the U.S. and Iran.
The Stoxx 600 is currently on course to end the month 0.9% higher.
U.K. markets are closed Monday for a national holiday.
— Chloe Taylor
Treasury yields ease after Jackson Hole-driven surge
The 10-year U.S. Treasury yield slipped less than 1 basis point to 4.716% on Monday, holding near elevated levels after Federal Reserve Chair Kevin Warsh’s hawkish Jackson Hole speech drove yields higher Friday.
Warsh at Jackson Hole gave a more hawkish reading of the economy than he had in July. He said elevated prices needed to be the Fed’s main focus and described financial conditions as not being broadly restrictive, a change from his July news conference, when he said they were uneven.
He did that while swiping back at his critics and insisting his policy of deliberate ambiguity about Fed policy is here to stay.
—Lee Ying Shan
Japanese yen hits 160 as wide U.S.-Japan rate gap keeps currency under pressure
The yen weakened to 160 against the dollar on Monday, as it gives up most gains following U.S.-Japan intervention to prop up the currency.
UBP said in a note Monday that the intervention had raised the cost of speculative yen selling, but warned its impact was unlikely to endure without a shift in economic fundamentals.
The yen’s main vulnerability remains the roughly 275-basis-point gap between U.S. and Japanese policy rates, the bank’s Asia senior economist Carlos Casanova wrote. With the Bank of Japan constrained by cooling inflation and fragile demand, carry trades remain attractive unless the BOJ tightens further or the Federal Reserve cuts rates.
Casanova added that the Bank of Japan remained hawkish but was constrained when it came to normalizing policy rapidly.
“Our adjusted Taylor-rule estimate implies that rates should be around 1.35%,” the bank said, pointing to one more 25-basis-point hike by October and possibly another in 2027.
—Lee Ying Shan
K-beauty giant APR’s shares gain 100% this year ahead of U.S. Costco launch in September
Shares of South Korean beauty company APR have surged nearly 100% this year as the K-beauty company rapidly expands its presence in the U.S.
Its flagship Medicube brand is set to enter Costco stores across the U.S. in September, APR told CNBC. Medicube’s Zero Pore Pad 2.0, a skincare product designed to cleanse pores, will be available across the retailer’s U.S. stores.
The upcoming launch marks APR’s latest push into major U.S. retailers, following launches at Ulta Beauty in August last year, Target in April and Walmart in June.
The Korean beauty company, which listed on South Korea’s benchmark Kospi in 2024, now has a market capitalization of about 17.3 trillion won ($12.5 billion), nearly twice that of longtime beauty heavyweight Amorepacific and more than three times that of LG Household & Health Care.
Read the full story here.
—Jenny Lee
China’s factory activity shrinks for second straight month, contracting less than expected
China’s manufacturing activity in August shrank for a second straight month, though by less than market estimates, keeping the pressure on Beijing to support the economy as growth loses momentum.
The official purchasing managers’ index reading came in at 49.8, compared with 49.2 in July, National Bureau of Statistics data showed Monday, better than Reuters-polled economists’ forecast of 49.6.
China’s economy has come under mounting strain, with growth slowing to 4.3% in the second quarter, the weakest pace since late 2022, as soft domestic demand and a prolonged property slump continue to weigh on activity.
Read the full story here.
—Anniek Bao
Oil rises over 1% after U.S. forces strike two Iranian rocket launchers on Larak Island
Oil rose Monday, amid heightened concerns over supply disruptions after U.S. forces struck two Iranian rocket launchers on Larak Island on Sunday.
Futures for international benchmark Brent crude for November delivery gained 1.54% to $89.46 a barrel. U.S. West Texas Intermediate futures for October advanced 1.44% at $84.60 per barrel.
Vessel traffic through the Strait of Hormuz, a key route for global energy shipments, has been severely disrupted by the Middle East conflict, set to extend to its seventh month.
—Justina Lee
South Korea’s Kospi drops over 3%, Japan’s Nikkei 225 opens 2% lower
Asia-Pacific markets fell on Monday, with South Korean equities leading declines in the region after U.S. forces struck two Iranian rocket launchers on Larak Island on Sunday.
The benchmark Kospi was down 3.5%, while the small-cap Kosdaq declined 3.8%.
Japan’s Nikkei 225 was down 2.16%, and the Topix was 0.95% lower. Australia’s S&P/ASX 200 lost 0.27%.
— Lee Ying Shan
Asia markets set to fall as U.S. strikes Iranian rocket launchers in Strait of Hormuz
Asia-Pacific markets were set to fall Monday after the U.S. struck Iranian rocket launchers at Larak Island in the Strait of Hormuz, reigniting fears of an escalation.
Japan’s Nikkei 225 was poised to drop, with the Chicago and Osaka futures contract at 65,530 and 65,830, respectively, compared with the index’s previous close of 66,405.56.
Hong Kong’s Hang Seng index futures were at 25,472, compared with the index’s last close of 25,584.49.
Futures for Australia’s S&P/ASX 200 last traded at 9,009, the index closed at 9,092.3.
U.S. forces struck two Iranian rocket launchers on Larak Island on Sunday. Islamic Revolutionary Guard Corps were preparing rockets carrying sea mines for launch into the Strait of Hormuz, U.S. Central Command confirmed to MS NOW.
“Last week, CENTCOM completed clearing sea mines from the strait’s international shipping routes. U.S. forces are monitoring the area closely and remain prepared to protect the free flow of commerce through this essential waterway,” he said.
— Lee Ying Shan
Jefferies ‘constructive’ on bond and stocks
Yields are near multiyear highs, and stock volatility has picked up. But Jefferies chief market strategist David Zervos isn’t worries.
“I believe the Treasury has become the dominant policy actor in shaping financial conditions, leading me to remain constructive on bonds and equities as buybacks and potential curve-twisting operations provide a powerful market backstop,” he wrote. “Treasury intervention can help offset bond market disruptions, support a weaker dollar, and drive lower long-end yields, creating a favorable backdrop for risk assets.”
— Fred Imbert
