Global Markets Today, August 20, 2026: Asian Shares Rise, Oil Approaches $92; India May Get Cautious Start 

Mumbai, August 20: Indian shares are likely to open on a cautious note on Thursday as Asian stocks trade higher and Wall Street rebounds but elevated crude oil prices and continuing uncertainty around the US-Iran conflict keep investors wary. 

Asia advances 

Asian markets were largely firmer in early trade after the US Treasury announced plans to double the size of its long-duration debt buybacks, helping ease pressure in global bond markets. The move pushed US Treasury yields lower, with the 10-year yield falling to around 4.65%, while the 30-year yield eased to about 5.19%. The decline in yields offered some relief to risk assets after a sharp bond-market selloff earlier in the week. 

Japan’s Nikkei climbed 1% and broader Topix rose 0.9%, while South Korea’s Kospi rose 6% supported by renewed optimism around chip stocks after SK Hynix announced a massive $28.6 billion share buyback. MSCI AC Asia Pacific ex Japan rose 1.7%. 

Wall Street rebounds after three-day fall 

US stocks recovered on Wednesday, with the Dow Jones Industrial Average and S&P 500 snapping a three-session losing streak. The rebound came as investors found some relief from the easing in long-term Treasury yields following the US government’s intervention in the bond market. 

However, the previous session’s technology-led selloff remains a concern for global equities. Rising bond yields had triggered selling in semiconductor and other high-growth stocks, with investors increasingly questioning whether lofty valuations linked to the AI boom can be sustained. 

Oil remains key risk for Indian markets 

Crude oil prices remain a major headwind for India. Brent crude rose 0.3% to $91.9 a barrel on Thursday, while WTI was around $84.5, up 0.1%, with both benchmarks having gained for four consecutive sessions on Wednesday, touching their highest levels since July 24. 

The market continues to monitor developments around the Strait of Hormuz, a critical route for global oil shipments. While the US says the waterway remains open, Iran has claimed it is blocked, prompting some shipowners to avoid the route. The uncertainty is keeping a risk premium embedded in crude prices. 

For India, sustained oil prices above $90 could weigh on sentiment because the country remains heavily dependent on crude imports. Higher energy costs can put pressure on inflation, the rupee and corporate margins, particularly for oil-consuming sectors. 

What it means for Indian equities 

The combination of firmer Asian markets, lower US bond yields and a recovery on Wall Street offers some support for domestic equities after their recent losing streak. However, elevated crude prices and geopolitical uncertainty could cap the upside. 

Investors are likely to remain selective, with energy companies remaining in focus amid higher crude prices. Overall, Indian markets may see a cautious start, with global cues providing initial support but oil and Middle East developments likely to dictate the direction as the session progresses. 

Source

• Exchanges