Stocks near highs as oil climbs on Gulf risks

Asian equities were mostly higher on Monday, August 10, 2026, following a positive close on Wall Street. Japan’s Nikkei 225 (NKY) led regional gains, reflecting continued investor interest in markets that have been benefiting from global risk appetite. Other major Asian benchmarks also moved higher, though performance across the region was uneven.

The broader backdrop for the Asian session was shaped by strength in U.S. stocks at the end of the previous week, as investors reassessed interest rate risks and adopted a more constructive stance toward equities. The moves underscored the transmission of sentiment from U.S. markets into Asia at the start of the new trading week.

On Friday, U.S. equity indexes posted further gains, with the S&P 500 (SPX) rising 0.6% to 7,757.64 and closing at an all‑time high. The Dow Jones Industrial Average (DJIA) added 0.3% to 54,036.93, while the Nasdaq composite advanced 1.3% to 26,690.62. The gains pointed to broad, though not uniform, strength across large‑cap and growth names.

These advances contributed to global stock benchmarks trading near record levels as the new week began. The performance highlighted how U.S. markets remain a key reference point for global risk sentiment, setting the tone for trading in other regions.

A key driver of the latest equity gains was a weaker‑than‑expected U.S. labor market reading. Employers unexpectedly cut 23,000 jobs in the most recent month, signaling a softer jobs backdrop than many investors had anticipated. The data reduced expectations for a near‑term increase in Federal Reserve interest rates.

With the probability of an imminent rate hike perceived as lower, equities drew support from the prospect of a more patient policy stance. The softer jobs figures thus acted as a counterweight to other sources of uncertainty, helping sustain demand for risk assets despite lingering macroeconomic concerns.

While equities gained, oil prices also moved higher, reflecting mounting geopolitical risks. Brent crude (UKOIL) rose 0.6% to $84.01 per barrel, and U.S. benchmark crude advanced 0.3% to $78.46 per barrel. The increases came as market participants weighed potential disruptions to energy supply routes.

Crude was supported by renewed uncertainty in the Middle East and Gulf. Iran rejected talks with the United States, and efforts to secure a deal to reopen the Strait of Hormuz remained elusive. Concerns about attacks that threaten shipping routes have reinforced fears over energy transport through key chokepoints.

These developments added a risk premium to oil, contrasting with the more supportive backdrop for equities. Together, the softer U.S. jobs data and heightened Gulf tensions produced a mixed market picture: buoyant stock prices alongside firmer energy costs tied to geopolitical risk.