Asian stocks poised to rise as Iran tensions lift oil prices

Asian equities were positioned for a higher Monday open as oil prices advanced following renewed fighting between the United States and Iran. Futures indicated gains for Japanese and South Korean stocks, while Australian contracts were little changed. U.S. equity futures were broadly steady after the S&P 500 (SP500) fell 0.40% Friday and the Nasdaq 100 rose 0.20%. The dollar held in a narrow range, and cash trading in U.S. Treasuries remained closed Monday for a public holiday. Investors face two linked risks: disrupted oil shipments through the Strait of Hormuz could push energy prices higher, while inflationary pressure could encourage the Federal Reserve to raise interest rates. That combination could weigh on bonds and rate-sensitive stocks even as energy producers benefit from higher crude prices. Brent crude gained about 0.5% after Iran said it targeted three unauthorized tankers traveling through the strait, along with several U.S.-linked vessels. Tehran described the action as retaliation for American attacks on Iranian tankers, though authorities did not say whether the vessels were hit. Iran’s Islamic Revolutionary Guard Corps also reported attacks on a U.S. naval drone and an unmanned surface vessel attempting to enter the waterway. Top security official Mohsen Rezaee said Iran planned to establish another restricted zone outside the strait. The six-month conflict involving Iran, the United States and Israel therefore remained far from resolution. Markets are turning to Friday’s U.S. consumer-price report after stronger-than-expected employment data increased expectations for a Fed rate increase at its Sept. 16 meeting. A hotter reading could strengthen that case, while softer inflation could support unchanged rates. The yen traded near 156 to the dollar after gaining 2.4% last week, supported by carry-trade unwinding and expectations of further Bank of Japan increases. Speculation that Japan’s Government Pension Investment Fund could raise domestic-bond allocations also helped. China plans to inject 300 billion yuan, or about $44.7 billion, in special-bond proceeds into major banks and insurers to ease margin pressure, expand lending capacity and cushion potential loan losses. Hon Hai Precision Industry, a major assembler of Nvidia (NVDA) servers, reported a 52% increase in monthly sales as artificial-intelligence infrastructure demand remained strong. The result offers a data-center investment signal as markets weigh AI demand against borrowing, competition and excess-capacity risks.