[MARKET ANALYSIS] Mixed start to Asia-Pac trade amid higher oil prices, hawkish rate bets and after Trump rejected Iran's proposal but expects talks to resume this week

APAC Stocks: Mixed Asia-Pac stocks begin the week mixed as higher oil prices spur hawkish rate bets following mixed geopolitical headlines over the weekend, as US President Trump rejected Iran's proposal for a peace deal to reopen the Strait of Hormuz, but expects talks to resume this week. ASX 200: +0.5% Trades higher with gains led by strength in the top-weighted financial sector, but with upside capped heading into a widely anticipated rate hike by the RBA tomorrow. Nikkei 225: Flat Swung between gains and losses with early gains wiped out amid higher yields and with participants also digesting firmer-than-expected Services PPI data from Japan, while former BoJ official Momma touted the possibility of the central bank hiking rates again in October. KOSPI -2.3% Suffered on return from a 4-day closure with heavy selling pressure seen in the local tech behemoths. Hang Seng & Shanghai Comp: Hang Seng +0.5% / Shanghai Comp -1.8% Chinese markets are mixed as the Hong Kong benchmark mildly gains, while the mainland is heavily pressured at the start of a holiday-shortened trading week following a slowdown in Industrial Profits, while PBoC liquidity efforts and news that the US and China agreed to a USD 30bln reciprocal tariff reduction framework failed to spur risk appetite. US Equity Futures: Lower Gradually retreated with Nasdaq futures leading the downside amid the upside in oil and yields. European Equity Futures +0.3% Indicate a positive cash market open with Euro Stoxx 50 futures up 0.3% after the cash market closed with gains of 0.5% on Friday.