Asia stocks edge higher, oil up amid Gulf confusion

On August 10, Asian share markets followed Wall Street's positive trend after a soft U.S. jobs report reduced the immediate risk of rising interest rates. However, tensions over Gulf peace talks led to a rise in oil prices, with Brent crude increasing to $84.32 a barrel. The upcoming U.S. consumer price report is expected to indicate a 0.1% rise in the headline and 0.2% for the core CPI. Japan's Nikkei index rose by 0.6%, while South Korea's index gained 0.5%. Analysts noted significant earnings growth in the S&P 500, particularly in AI-related stocks, predicting continued market interest in upcoming earnings reports from various tech companies. In bond markets, yields on 10-year Treasuries rose slightly, while the U.S. dollar weakened.

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A man walks in front of an electronic screen displaying Japan's Nikkei share average inside a conference hall in Tokyo, Japan, April 27, 2026. REUTERS/Issei Kato/File Photo Purchase Licensing Rights, opens new tab

Summary
Companies
Nikkei rises, Nasdaq futures flat
Oil firm amid confusion over Gulf peace talks
Market pares US rate risk as CPI test looms

SYDNEY, Aug 10 (Reuters) - Asian share markets tracked Wall Street higher on Monday after a soft U.S. jobs report pared the risk of a near-term rise in borrowing costs, though a lack of progress in Gulf peace talks saw oil prices ‌creep higher.

Iran said on Sunday that a deal with Oman defining new shipping lanes in the Strait of Hormuz was in its final stages but reiterated that the waterway would only reopen once the United States met other conditions.

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Brent crude added 0.9% to $84.32 a barrel as shipping through the vital waterway remained at a trickle, while U.S. crude rose 0.7% to $78.74 a barrel.

The latest revival in fuel costs raises the stakes for the U.S. July consumer price report due on Wednesday where analysts look for a ⁠rise of 0.1% in the headline and 0.2% for the core.

Any upside surprise could rekindle speculation of a hike from the Federal Reserve next month.

"Our forecast for core CPI of 0.22% is probably not quite firm enough to prompt a hike from the Fed at the September meeting, though repeated prints closer to 0.3% could do it," said Michael Feroli, chief U.S. economist at JPMorgan.

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"One thing we are watching for is any rebound in core goods prices after a two-month stretch in which they fell."

The futures market has scaled back the chance of a September move to around 44%, from 67% a week ago.

The pullback in rate risk helped Treasuries rally on Friday and saw Wall Street close at record highs. Japan's Nikkei (.N225), opens new tab followed that lead and rose 0.6% on Monday, while South Korea (.KS11), opens new tab added 0.5%.

MSCI's ‌broadest index ⁠of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab edged up 0.3%.

DOUBLE-DIGIT EARNINGS GROWTH

For Europe, EUROSTOXX 50 futures and DAX futures both dipped 0.1%, while FTSE futures fell 0.4%.

S&P 500 futures dipped 0.1%, while Nasdaq futures were little changed having climbed 5% last week amid a slew of upbeat earnings reports.

Analysts at BofA noted that with nearly 90% of S&P 500 results in, earnings per share were up 30% on the year after excluding investment gains at Alphabet ⁠and Amazon. A 76% EPS beat rate matched the strongest level since 2021.

"AI remains the stand out, with median EPS growth of 28% versus 12% for non-AI related stocks, though consensus expects AI to slow to 16% next quarter," they said in a note.

Earnings are lighter this week but include semiconductor ⁠company Applied Materials (AMAT.O), opens new tab, networking equipment maker Cisco (CSCO.O), opens new tab and cloud infrastructure technology company CoreWeave (CRWV.O), opens new tab.

In bond markets, yields on 10-year Treasuries were a shade higher at 4.673% with the market bracing for $125 billion in new issuance this week.

The drop in yields and general improvement in risk had ⁠pulled the U.S. dollar broadly lower, with the euro just off a seven-week top at $1.1557 .

The dollar was flat on the yen at 157.85 , with investors still wary of intervention should they push the yen down too far.

In commodity markets, the drop in yields helped non-interest-paying gold hold at $4,342 an ounce , having climbed more than 7% last week.

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Reporting by Wayne Cole Editing by Shri Navaratnam

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Asia stocks edge higher, oil up amid Gulf confusion

DOUBLE-DIGIT EARNINGS GROWTH

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