Nikkei jumps as Asia stocks mix and oil rises before key US inflation data

Bangkok,UPDATED: Aug 10, 2026 16:08 IST

Shares were mixed across Asia and Europe on Monday, with Japan’s Nikkei 225 leading the gains after Wall Street ended higher at the end of last week. Oil prices also moved up as uncertainty continued over efforts to end the conflict in the Middle East.

Investors were also looking ahead to key US inflation data due this week, after a weaker-than-expected US jobs report raised hopes that the Federal Reserve may wait longer before raising interest rates. That helped lift US markets on Friday, with major indices extending gains and some hitting fresh highs.

In early European trade, Germany’s DAX rose 0.3 per cent to 26,411.01, while Paris’ CAC 40 was down 0.1 per cent at 8,703.73. Britain’s FTSE 100 fell 0.3 per cent to 10,869.35. US futures were mixed, with the S&P 500 future up 0.1 per cent and the Dow Jones Industrial Average future down 0.1 per cent. In Tokyo, the Nikkei 225 jumped 2.1 per cent to 66,970.22, helped by strong gains in technology shares. Tokyo Electron rose 4.1 per cent and Advantest gained 6.4 per cent.

South Korea’s Kospi added 0.7 per cent to 6,299.66, though major chipmakers slipped, with Samsung Electronics down 0.4 per cent and SK Hynix down 0.1 per cent. Analysts said foreign investors were selling Big Tech shares to lock in profits from recent gains and rebalance holdings into other sectors, such as defence contractors. Hong Kong’s Hang Seng rose 1.1 per cent to 25,937.49 and the Shanghai Composite index gained 0.7 per cent to 3,966.59. Australia’s S&P/ASX 200 fell 0.3 per cent to 9,232.60. Taiwan’s Taiex surged 1.6 per cent, while India’s Sensex was nearly unchanged.

Oil prices rose after Israel rejected a deal announced by US President Donald Trump for Gaza. Details also emerged on a possible deal between Iran and Oman on managing the Strait of Hormuz, as Tehran suggested vessels linked to "hostile countries" would be barred. At the same time, Yemen’s Iranian-backed Houthi rebels struck a government-held port on the country’s Red Sea coast, adding to fears over threats to key shipping routes and the risk of a return to civil war. Brent crude rose 0.8 per cent to USD 84.23 a barrel, while US benchmark crude gained 0.7 per cent to USD 78.72 a barrel. "Negotiators said that a deal to establish a safe shipping route was close, but Iran may now be exploring just how much it can extract from the US in return," Bas van Geffen, senior macro strategist for Rabobank, said in a commentary.

This week, investors will get several important updates on US inflation, with the consumer price index the most closely watched. Inflation in July is forecast to have risen at a 3.4 per cent rate, easing slightly from 3.5 per cent in June, though it has remained above 3 per cent for most of the year. On Friday, US stocks rose and Treasury yields fell after the government said employers unexpectedly cut 23,000 jobs last month. The report also revised payroll figures for May and June lower by a combined 103,000 jobs. The weaker jobs market raised hopes that the Fed may wait longer before raising interest rates, but it also added to concerns about household spending at a time of high inflation. The S&P 500 rose 0.6 per cent to 7,757.64, setting an all-time high. The Dow industrials gained 0.3 per cent to 54,036.93, just below the record set on Wednesday, and the Nasdaq composite climbed 1.3 per cent to 26,690.62. Technology shares again led the gains, with Nvidia up 2.3 per cent and Broadcom rising 1.7 per cent. In other dealings early Monday, the US dollar rose to 158.72 Japanese yen from 157.71 yen, while the euro slipped to USD 1.15617 from USD 1.1568.

Overall, markets started the week with mixed equity moves, strong gains in Japan, firmer oil prices and a close watch on US inflation, while uncertainty in the Middle East and signs of slower US employment remained central for investors.

With PTI Inputs

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