Newsquawk Daily Asia-Pac Opening News - 25th August 2026

US stocks were mixed on Monday, with the Dow Jones outperforming in the green, while the other major indices closed lower. Weakness was led by the Nasdaq as the Technology sector underperformed, with both semiconductor and memory names under pressure. Despite the broader downside, the equal-weight S&P 500 was flat, while sectors were mixed. Consumer Staples, Communication Services and Financials led the gains, while Technology, Energy and Industrials lagged. Energy prices settled lower despite the Treasury confirming harsh sanctions on Iran under Operation Economic Outcast, targeting nearly 60 Iranian entities, individuals and vessels, alongside secondary sanctions aimed at five key Iranian sectors: digital assets, technology, gold, aviation and shipping. The administration's focus on intensifying economic pressure rather than further military action may have helped keep some pressure on crude. Meanwhile, sources reported that Trump spoke with the Pakistani Army Chief last week ahead of the latter's visit to Tehran, with Trump reportedly wanting Pakistan to use its influence to bring Iran back to the negotiating table, suggesting there remains some willingness from the administration to pursue diplomacy. USD saw strength on Monday, and gained, albeit to varying degrees against G10 FX peers, with the Loonie the G10 laggard, after US President Trump formally announced new 50% tariffs on Canadian autos, auto parts and steel from 1st January 2027. Elsewhere, the most notable headlines were on the US/Iran front and the accompanying Treasury Secretary Bessent press conference in otherwise thin newsflow. Briefly recapping, Bessent announced Operation Economic Outcast on the Iranian economy, and threatened any further enablers of the Iranian economy. In the US morning, CNBC reported that Bessent could tap the USD 1tln Treasury general account to fund bond buybacks, which garnered slight weakness in the Buck. There was no tier 1 US data or Fed speak on Monday, with the highlights this week being NVIDIA earnings (Wed) and Jackson Hole (Fri). Looking ahead, highlights include Singapore GDP, Japan Leading Index & BoJ Core CPI, RBA Minutes, Australian Supply. SNAPSHOT STOCKS S&P 500 -0.3% Nasdaq Comp. -0.8% DJIA +0.3% Russell 2000 -0.7% ES Sep'26 -0.2% RTY Sep'26 -0.6% NQ Sep'26 -0.9% YM Sep'26 +0.3% FX DXY +0.2% (98.99) EUR/USD -0.1% USD/JPY +0.1% GBP/USD -0.1% BONDS US T-Note Sep'26 +7 ticks 10yr Bund Sep'26 +1 ticks US 10yr Yield 4.70% German 10yr Yield 3.25% ENERGY & METALS WTI Oct'26 -2.4% Brent Nov'26 -2.6% Spot Gold +1.1% LME Copper +0.2% CRYPTO Bitcoin +1.6% Ethereum +0.6% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Singapore GDP, Japan Leading Index & BoJ Core CPI, RBA Minutes, Australian Supply. Click for the Newsquawk Week Ahead. IRAN CONFLICT US President Trump posted that Iran is completely collapsing. US President Trump was said to have held a telephone conversation with Pakistani Army Chief Field Marshal Asim Munir last week, while Trump discussed the Iran issue and asked Munir to use Pakistan's influence to resume negotiations, according to an informed source cited by Al Jazeera. US War Secretary Hegseth said not ruling out the use of military force in the Strait of Hormuz or anywhere else. US Treasury sanctioned nearly 60 Iran-linked entities, people and vessels across nuclear, missile, cyber and oil networks. The measures target five sectors for potential secondary sanctions including digital assets, technology, gold, aviation and shipping, with sanctions targeting a network of broker companies and shadow-fleet vessels across the UAE, Hong Kong, China, Singapore, Switzerland and Europe. US Treasury Secretary Bessent said today we are launching Operation Economic Outcast and are going to end the Iran threat, while he stated that Iran has two paths, normalcy or total isolation. Bessent noted that the actions of the Treasury and other agencies will tighten the noose and block every potential source of revenue that funds the IRGC and the Iranian regime, with the US enforcing a zero-leakage approach. He also stated that countries cannot claim they are blind, as Iran's enablers purchase and transport its petroleum and turn a blind eye to seaborne oil transfers and overland transits. Furthermore, he said President Trump is making calls to world leaders to cut economic ties with Iran and that the US expects actions from other nations and, if others do not act, the Treasury will unilaterally act, while countries will have a finite timeline to shut down activities identified by the US Treasury, including closing Iran's bank branches abroad, with the US to end dollar access to those laundering Iran money. US Treasury Secretary Bessent said trying to buy Iran's appeasement will no longer work and there will be a wave of sanctions after this, and major financial institution sanctions by the end of the week. US Secretary of State Rubio spoke with the German Foreign Minister about their shared commitment to freedom of navigation in the Strait of Hormuz. Iran’s Economy Minister said the country is fully prepared for the US sanctions and that they cannot cut off Iran’s financial arteries. Iran’s Parliamentary Speaker Ghalibaf said the Americans know that no one will believe their nonsense and that the US is not in a position economically to restrict its relations with other countries any further, while he added that Iran's trading partners have made it clear, both in the media and by sending messages, that they do not believe these statements. Yemen’s Houthi military spokesperson said the group’s forces targeted a Saudi ship in the northern Red Sea off Yanbu, claiming a direct hit, while the group is prepared to respond to any escalation with stronger strikes and broader, larger-scale operations, according to Al Mayadeen. US TRADE US stocks were mixed on Monday, with the Dow Jones outperforming in the green, while the other major indices closed lower. Weakness was led by the Nasdaq as the Technology sector underperformed, with both semiconductor and memory names under pressure. Despite the broader downside, the equal-weight S&P 500 was flat, while sectors were mixed. Consumer Staples, Communication Services and Financials led the gains, while Technology, Energy and Industrials lagged. Energy prices settled lower despite the Treasury confirming harsh sanctions on Iran under Operation Economic Outcast, targeting nearly 60 Iranian entities, individuals and vessels, alongside secondary sanctions aimed at five key Iranian sectors: digital assets, technology, gold, aviation and shipping. The administration's focus on intensifying economic pressure rather than further military action may have helped keep some pressure on crude. Meanwhile, sources reported that Trump spoke with the Pakistani Army Chief last week ahead of the latter's visit to Tehran, with Trump reportedly wanting Pakistan to use its influence to bring Iran back to the negotiating table, suggesting there remains some willingness from the administration to pursue diplomacy. SPX -0.28% at 7,653, NDX -0.98% at 29,024, DJI +0.26% at 53,417, RUT -0.70% at 2,997. Click here for a detailed summary. TARIFFS/TRADE US President Trump posted that on January 1st, 2027, tariffs on all cars, trucks, automotive parts and steel from Canada will be increased to 50%, but noted that building in the US will mean zero tariffs. Trump said Canada has been ripping off the US for years and cited a USD 60bln deficit between the countries. US President Trump said there is a lot of "bluster" from Ontario Premier Ford, and that without the US, Canada could not survive, while he added that someone should get these clowns (referring to Ford and Carney) to "fall in line" or the consequences for Canada will be far worse. US VP Vance said negotiations with Canada are ongoing and that they apply ridiculous tariffs on states like Maine. US Treasury Secretary Bessent said Canada was offered a good deal last week, but chose to reject it. USTR Greer said the US offered Canada a lot, but Canada wanted more, while he stated the latest spat only affects a very small part of trade between the US and Canada. Canadian PM Carney said Canada could not accept what the US offered, nor could they give the US what it asked, and that Canada will start intense discussions with the EU in autumn. Ontario Premier Ford said regarding Trump's tariffs that Canada should consider charging the US triple on oil, potash, uranium, metals and rare earth metals. US reportedly eyes 7.5% China overcapacity tariffs before the Trump-Xi talks. China is reportedly willing to strengthen cooperation with the US and properly manage differences. NOTABLE HEADLINES US Treasury launched the Quantum-Readiness Task Force to accelerate the financial sector's transition to post-quantum cryptography. US Treasury Secretary Bessent said they are going to continue with the regular programme of auctions when asked if he is looking at reducing auction sizes for longer-term Treasury debt and what other actions could be considered from the Treasury toolkit. Bessent responded that they have not bought any yet, with the first operation on September 9th, when asked if there will be more buybacks. US Treasury Secretary Bessent could tap near USD 1tln Treasury General Account to fund bond buybacks, according to sources cited by CNBC. Officials would not say how much, if any, of the TGA would be used or when such an announcement could be made, while there was no implication it could be used beyond the purchase of off-the-run securities that were the focus of last week's announcement. FBN's Gasparino said Treasury Secretary Bessent will do whatever it takes to "put the fear of God" into bond vigilantes, shorting the long end of the curve in an attempt to drive the 10-year yield to 5%, according to Wall Street executives with direct knowledge. DATA RECAP US Chicago Fed National Activity Index (Jul) -0.08 (prev. 0.06). FX USD saw strength on Monday, and gained, albeit to varying degrees, against G10 FX peers, with the Loonie the G10 laggard, after US President Trump formally announced new 50% tariffs on Canadian autos, auto parts and steel from 1st January 2027. Elsewhere, the most notable headlines were on the US/Iran front and the accompanying Treasury Secretary Bessent press conference in otherwise thin newsflow. Briefly recapping, Bessent announced Operation Economic Outcast on the Iranian economy, and threatened any further enablers of the Iranian economy. In the US morning, CNBC reported that Bessent could tap the USD 1tln Treasury general account to fund bond buybacks, which garnered slight weakness in the Buck. There was no tier 1 US data or Fed speak on Monday, with the highlights this week being NVIDIA earnings (Wed) and Jackson Hole (Fri). EUR marginally softened but with price action kept to within a tight range at the 1.1600 handle. GBP ultimately trickled lower albeit in a choppy manner amid a lack of major pertinent catalysts for the UK. JPY slightly softened with USD/JPY edging back above the 159.00 handle despite softer US long-end yields. FIXED INCOME T-notes settled higher and the curve bull flattened, with sources suggesting that the Treasury could use funds from the Treasury General Account, currently around USD 1tln, to finance additional buybacks. COMMODITIES Oil prices were pressured despite the escalating tensions between the US and Iran, with the former launching 'Operation Economic Outcast'. IEA Chief Birol said they are not discussing a second release of strategic oil reserves at this time and that the first release was in March for 400mln bbls. Libya’s National Oil Corporation signed a production-sharing agreement with Chevron (CVX) as part of the country's oil and gas bidding round. Mexico's Agriculture Minister said Mexico will reinforce sterile fly dispersal in Sonora and Chihuahua to contain screwworm as phased border reopening to livestock trade starts. GEOPOLITICAL RUSSIA-UKRAINE Ukrainian President Zelensky said he will seek talks with Russian President Putin on grain exports. EU Foreign Policy Chief Kallas said she is proposing tougher sanctions against Russia this autumn. OTHER Top South Korea and US diplomats agreed to continue "close" communication and cooperation to address North Korea's nuclear issue and promote peace, according to Yonhap. ASIA-PAC NOTABLE HEADLINES Japan's government is reportedly considering tax breaks on gains from sales of non-core businesses, according to source reports. Gains from non-core sales would be exempt from corporate tax, provided companies reinvest proceeds in acquisitions, while the proposal is expected to be submitted as part of tax reform requests due at the end of this month. India is set to receive the lowest amount of monsoon rainfall since 2009, and September rainfall is expected to be lower than the average level. EU/UK NOTABLE HEADLINES Germany’s Finance Minister said the surge in bond yields is a result of US President Trump's war. ECB's Cipollone said monetary policy needs to be well calibrated, while he added that inflation is far from adverse and severe scenarios. Furthermore, he said there are no signs pointing to a scenario of stagflation.