Global Markets Today, September 8, 2026: Asia Mixed, Oil Around $97 As Iran Tensions Weigh; Indian Markets Seen Opening Muted

Mumbai, September 8: Asian equities traded mixed on Tuesday as investors navigated heightened geopolitical tensions in the Middle East, a surge in the Japanese yen and elevated crude oil prices, with the absence of a regular U.S. trading session adding to the cautious tone. 

U.S. markets were closed on Monday for the Labor Day holiday, leaving Asian investors without a fresh Wall Street cash-market signal. S&P 500 futures were 0.07% lower in early Asian trade. The three major U.S. indexes had ended lower on Friday after stronger-than-expected U.S. jobs data boosted expectations of a Federal Reserve rate hike later this month. 

Japan’s Nikkei 225 edged 0.07% higher after swinging between gains and losses. South Korea’s KOSPI gained 1.8%, although Australia’s benchmark fell 0.7% after a sharp deterioration in consumer sentiment. 

The region’s gains remained tempered by growing concerns over the Middle East. Iran has threatened to retaliate against U.S. attacks by targeting energy infrastructure across the Gulf, keeping investors wary of a further disruption to global crude supplies. 

Oil Extends Rally 

Oil prices remained the biggest source of uncertainty for global markets. Brent crude futures rose for a third consecutive session, trading around $97 a barrel after touching a six-week high on Monday. West Texas Intermediate crude was at $92.7 a barrel. 

The latest gains came after Iran warned that Gulf energy infrastructure could be targeted if the U.S. launches further attacks. The Strait of Hormuz, through which a significant portion of global oil shipments passes, remains at the centre of investor concerns. Analysts expect the conflict to keep a sizeable risk premium embedded in crude prices for as long as supply disruptions persist. 

For India, the oil move is particularly important. The country imports around 85% of its crude requirements, leaving the economy and corporate earnings vulnerable to a prolonged period of elevated energy prices. Higher crude prices can also put pressure on the rupee and inflation while widening India’s trade deficit. 

Yen Strength, Fed Bets Add To Caution 

Currency markets also remained in focus. The yen strengthened as much as 0.6% to 153.51 per dollar, its strongest level since February 18, amid growing expectations that the Bank of Japan could accelerate monetary tightening. The dollar index, meanwhile, slipped to a two-week low. 

Markets are also pricing around a 60% probability of a 25-basis-point U.S. rate hike at the Federal Reserve’s September 16 meeting. 

Indian Markets Seen Opening Flat 

Indian equities are likely to start Tuesday’s session on a muted note. The signal comes after the Sensex and Nifty fell to six-week lows in the previous session amid selling pressure in IT stocks and growing concerns over crude prices and U.S. monetary policy. 

The lack of a fresh U.S. equity-market close means domestic investors are likely to take greater cues from Asian markets, crude oil and currency movements during the early part of the session. Elevated oil prices and Middle East tensions could cap gains, while Asian markets may provide some support. 

Overall, Indian benchmarks are likely to see a cautious-to-muted opening, with investors keeping a close watch on crude prices, the rupee and developments around the Strait of Hormuz. Any further escalation between the U.S. and Iran could quickly intensify selling pressure, while a retreat in oil prices could offer some relief to oil-sensitive sectors. 

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