Newsquawk Daily Asia-Pac Opening News - 28th August 2026

US stocks were somewhat varied as all major indices closed higher on Thursday with gains led by Nvidia (NVDA) following strong earnings, including robust data centre revenue and upbeat long-term guidance. However, advances were far from broad-based, as the equal-weight S&P closed lower and every sector finished in the red aside from Technology, which rallied around 3%. USD was more-or-less flat with mixed performance against G10 FX peers. For the Greenback, headlines came via Fed speak at Jackson Hole, albeit little moved the dial, and US data in the form of jobless claims, which ticked lower and beneath expectations. Meanwhile, the advance goods trade deficit widened, led by a sharp rise in capital goods imports given high demand for AI hardware. Heading into Friday, Fed Chair Warsh's address at the Jackson Hole symposium is the key highlight. On the geopolitical front, the main update was reports that the Trump administration has repeatedly told mediators it has no interest in going back to the terms of the MoU it reached with Iran in June. Looking ahead, highlights include Tokyo CPI, Philippines Trade Data, Supply from Australia & Japan. SNAPSHOT STOCKS S&P 500 +0.7% Nasdaq Comp. +1.6% DJIA +0.2% Russell 2000 +0.3% ES Sep'26 +0.6% RTY Sep'26 +0.3% NQ Sep'26 +1.2% YM Sep'26 +0.2% FX DXY Flat (99.11) EUR/USD Flat USD/JPY Flat GBP/USD Flat BONDS US T-Note Sep'26 -4 ticks 10yr Bund Sep'26 -41 ticks US 10yr Yield 4.68% German 10yr Yield 3.25% ENERGY & METALS WTI Oct'26 +1.6% Brent Nov'26 +1.6% Spot Gold -0.2% LME Copper +0.4% CRYPTO Bitcoin +1.3% Ethereum -0.2% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Tokyo CPI, Philippines Trade Data, Supply from Australia & Japan. Click for the Newsquawk Week Ahead. IRAN CONFLICT US President Trump said they took 24 boats through Hormuz on Wednesday night, while he added Iran is in big trouble and is not paying its troops. Trump also said regarding pressuring Russian President Putin for Iran business, "who says I'm not?", as well as stated that millions of barrels of oil are coming through Hormuz daily. US President Trump’s administration has repeatedly told mediators it has no interest in going back to the terms of the MoU it reached with Iran in June, while Trump is willing to wait and see if squeezing Iran economically bears fruit, according to WSJ sources. US Treasury Secretary Bessent will make direct asks to ministers at the G20 to sever economic leakage that sustains the Iranian regime and the IRGC, according to FBN. He will discuss Iran-related activity Treasury has identified in specific nations and make clear that the US will be uncompromising in targeting any source of the regime’s illicit revenue, while Bessent is scheduled to have nearly a dozen bilateral meetings with various foreign finance leaders where he will raise this directly with them. US Navy is reportedly facing a severe financial crisis as the ongoing war with Iran forces the service to divert funds from payroll and maintenance accounts to cover combat operations, according to The Guardian sources. Any agreements concluded between Iran and Oman are of no importance to the US, and there are no ongoing or scheduled negotiations with Iran, while the naval blockade remains fully in place and the Strait is open and cleared of all mines, according to a US source cited by Al Jazeera. Iran-Oman deal on Strait of Hormuz ‘doesn’t matter’ as Trump controls blockade, according to NY Post citing a US official, while the deal, which an IRGC spokesman claimed was reached on Wednesday, remains subject to internal approval in Iran and lacks US recognition. Iran warned that vessels violating new Hormuz transit rules could face blacklisting alongside their flag, classification society and insurer, with penalties potentially extending to other ships using blacklisted service providers, according to Nour News citing an official. It was also reported that an Iranian lawmaker said Iran controls the Strait of Hormuz and will not allow vessels from the US, France, Britain or other hostile countries to enter the region. A senior Iranian security official warned that any US seizure of Iranian oil cargoes would trigger proportionate retaliation against US-linked shipping, energy, insurance and financial interests in the Persian Gulf, according to Nour News. Iran’s top security official Rezaei warned Iran would strike US military and economic interests if the US starts "mischief" against Iran during a meeting with the Qatari Foreign Minister. He also said that the US must take practical steps to meet Iran's conditions before Iran moves to reopen the Strait, while adding that Iran should not trust the US as it has repeatedly betrayed diplomacy and negotiations. Iran's security chief Rezaei said mediators asked Iran for its conditions to open Hormuz and Tehran is preparing a list, while they have agreed to a corridor with Oman, part of it lies in Omani waters and some in Iranian waters. Furthermore, he said Iran exported 80mln barrels of oil during the ceasefire and will target US economic interests if the blockade continues. Rezaei also commented that Dahiyeh and Beirut are their red lines, and a possible war is different from previous wars. Iran's Parliamentary Speaker Ghalibaf met with the Qatari PM, while Qatar stressed the need to resume the diplomatic track, according to Sky News Arabia. Qatari PM and Foreign Minister met the Iranian Foreign Minister in Tehran for talks amid ongoing diplomatic efforts to ease regional tensions, according to IRNA. Qatar PM said the talks in Tehran reaffirmed continuing efforts to de-escalate and promote regional security and stability. Qatar’s Foreign Ministry said Qatar and Iran discussed a proposed phased framework for reopening navigation through the Strait of Hormuz, including the establishment of a temporary joint shipping corridor and a mine-clearing project. Pakistan Foreign Ministry spokesperson said Pakistan is not obliged to comply with unilateral sanctions imposed on Iran, but UN sanctions would constitute a different matter, according to journalist Mallick. US TRADE US stocks were somewhat varied as all major indices closed higher on Thursday with gains led by Nvidia (NVDA) following strong earnings, including robust data centre revenue and upbeat long-term guidance. However, advances were far from broad-based, as the equal-weight S&P closed lower and every sector finished in the red aside from Technology, which rallied around 3%. SPX +0.72% at 7,731, NDX +1.43% at 29,642, DJI +0.20% at 53,574, RUT +0.28% at 3,014. Click here for a detailed summary. TARIFFS/TRADE US was reportedly mulling a new round of tariffs on chips, according to Politico sources. One approach under consideration would increase the number of tech products subject to levies, meaning duties would hit chips and potentially items such as laptops, gaming consoles and servers that fill data centres. Commerce Secretary Lutnick reportedly favours a structure linking foreign companies' relief from the tariffs to investments into US chip manufacturing, under which Lutnick would allow a set volume of chips to enter the country duty-free, with the amount tied to how much a company pledges to produce in the US. A phase-in period for new tariffs is also under consideration, although this remains subject to potential revisions in the coming weeks and months. US President Trump said he is renaming Lake Ontario to Lake America immediately, while he added that Canada has been ripping the US off for a long time and has been ripping it off on trade. Trump also stated that the US does not want Canada to make cars for the US, as well as stated that Canadian officials have treated the US badly, are nasty people and that Canada is the worst to deal with on trade. US Commerce Secretary Lutnick said Canadian PM Carney walked away from trade talks for political reasons and he expects Canada to want to talk after separatist votes. Canada added 50% tariffs to US copper wire and wood charcoal. China's Commerce Ministry said it reserves the right to take all necessary measures regarding US overcapacity tariffs. NOTABLE HEADLINES Fed's Hammack (2026 voter, hawkish dissenter) said the most recent inflation number was as expected, while she added that now is the time to act and that she does not see Fed policy as restrictive for the economy. Hammack said inflation above target has been persistent amid questions over how these shocks will play out, while her main worry is that the public will lose confidence in inflation returning to 2%. Furthermore, she noted people are worried about the state of inflation and cost of living, adding that neutral is something "you know it when you see it" and her estimate of neutral is higher than other Fed officials. Fed's Hammack (2026 voter, hawkish dissenter) said the job market is broadly in balance and the latest inflation data is in line with expectations. She also said that policy needs to be restricted and expects slow progress on inflation, which she sees ending the year around 3%. Furthermore, she said inflation might ease to around 2.5% at best next year and stated she goes into every meeting with an open mind and is open-minded about the cadence of Fed meeting schedules. Fed's Goolsbee (2027 voter, neutral) said he is trying to figure out if inflation shocks are persistent, while he noted that tariff- and war-related price increases are a challenge for the Fed. Furthermore, he said political pressure on the Fed puts him on edge and that political interference on central banks generally leads to inflation. Fed's Collins (2028 voter) said the recent PCE report did not change the modal outlook that current monetary policy is restrictive and will likely lead to a gradual disinflation, while she added that recent inflation data is mixed, with the headline figure stronger than expected but promising signs in the details. Collins separately commented that a rate increase is warranted if inflation disappoints, according to WSJ. Fed's Schmid (2028 voter, hawk) said mid-terms will not affect the Fed's October meeting and that he does not see the Fed's credibility as damaged in recent weeks. He said he would probably have supported a rate hike at the July meeting. He added that it will take time to change the Fed's balance sheet, there may be room to have fewer Fed meetings, it is unclear what Fed policy is restricting right now, and the Fed will have its work cut out for it as the next meeting looms. He said the Fed needs more information, while inflation is stubborn and sticky and the energy shock is leaking into the economy. DATA RECAP US Kansas Fed Manufacturing Index (Aug) 17 (Prev. 17) US Kansas Fed Composite Index (Aug) 10 (Prev. 9) US Goods Trade Balance Advance (Jul) -118.80B vs. Exp. -99B (Prev. -101.41B) US Initial Jobless Claims (Aug/22) 203.0K vs. Exp. 208K (Prev. 207.0K) US Continuing Jobless Claims (Aug/15) 1778.0K vs. Exp. 1790K (Prev. 1796.0K) FX USD was more-or-less flat on Thursday, with mixed performance against G10 FX peers. For the Greenback, headlines came via Fed speak at Jackson Hole, albeit little moved the dial, and US data in the form of jobless claims, which ticked lower and beneath expectations. Meanwhile, the advance goods trade deficit widened, led by a sharp rise in capital goods imports given high demand for AI hardware. Heading into Friday, Fed Chair Warsh's address at the Jackson Hole symposium is the key highlight. On the geopolitical front, the main update was reports that the Trump administration has repeatedly told mediators it has no interest in going back to the terms of the MoU it reached with Iran in June. EUR was little changed with the single currency unmoved by the uneventful ECB minutes, which noted that it was argued that a rate increase would not address the underlying cause of the rise in inflation. GBP lacked conviction in the absence of pertinent catalysts and with resistance seen at the 1.3600 level. JPY conformed to the general flat trend with not many surprises from the recent comments from BoJ Deputy Governor Himino, in which the tone was consistent with pricing of September’s likely 25bps hike, noting that the BoJ needed to “pay more attention to upside inflation risks than before”. FIXED INCOME T-notes were little changed as attention turns to Fed Chair Warsh at Jackson Hole. COMMODITIES Oil prices settled in the green as Iran/US rhetoric worsened on Thursday, reversing any initial progress. US is reportedly close to striking "massive" deal for Venezuelan oil fields, according to Axios. The Trump administration is in talks with Venezuela's interim government about taking an ownership stake in the South American country's oil resources. US Treasury issued a Venezuela General License for Venezuelan oil and petrochemicals, while it authorises oil and gas operations for six specified entities. US President Trump is expected to convene a meeting with US refiners and fuel retailers next week to highlight efforts to bring down gas prices. US President Trump reportedly met with Energy, EPA and Agriculture secretaries and discussed pending applications for refiner exemptions from US biofuel laws, according to sources. They also discussed a plan to compensate biofuel producers in future years for any business lost due to refiner exemptions. Iran’s oil minister said crude sales have continued despite a decline, with deliveries still reaching customers in distant markets, according to ISNA. GEOPOLITICAL RUSSIA-UKRAINE US President Trump told Axios in a phone interview on Thursday that he is not concerned that Russia will attack NATO countries. Furthermore, Trump called CIA Director Ratcliffe's trip "standard business" and expressed puzzlement over media accounts of it, while it was separately reported that Trump said he had good talks with Russian President Putin and that Putin is not attacking NATO territory. Russia's Kremlin said Moscow remains open to participating in negotiations for a Ukrainian settlement, according to Al Arabiya. Russian Defence Ministry said Russian forces hit a tanker in the Izmail Port, according to Interfax. Russian government spokesperson Peskov said Russia's response to Ukrainian strikes on Russia's economic and trade infrastructure will be harsh. Russian Foreign Ministry reiterated that foreign troops in Ukraine which impede Russia's operation will become legitimate military targets. Russia’s Foreign Ministry also said the UK should abandon its hostile position towards Russia, which creates risks of transferring the conflict to a fundamentally new level, according to IFX. OTHER US military is reportedly facing a "beyond critical" shortage of Patriot missiles in Europe, largely driven by the Iran war, according to AP sources. Poland's Defence Minister said the US will scout for military base locations in the country. ASIA-PAC NOTABLE HEADLINES Japan LDP tax panel head Onodera said a JPY 5tln consumption tax cut is "fully feasible". Kioxia (285A JT) and Sandisk (SNDK) are said to plan a USD 31bln memory fab expansion in Japan, according to Bloomberg. SK Hynix (000660 KS) CEO said he is not seeing any significant signals of a memory downturn and expects the memory shortage to continue through end-2030, while the Co. is considering locations around the world that could provide new business opportunities for customers. CEO also said the Co. will begin volume production of next-generation HBM4E chips at the Indiana facility in H2 2029, and Indiana is expected to become a key US HBM production base. S&P affirmed India's rating at 'BBB/A-2'; Outlook Stable. EU/UK NOTABLE HEADLINES ECB Minutes noted it was argued that a rate increase would not address the underlying cause of the rise in inflation, while all members agreed to keep the three key ECB rates unchanged, judging a pause is appropriate amid high uncertainty and an incomplete inflationary impact from the energy shock. All members backed unchanged rates, provided communication stressed a firm commitment to ensure inflation stabilised at 2% over the medium term, while some noted they would not have opposed a rate rise, as incoming data since June had strengthened the case for further tightening. All members recognised waiting and reassessing in September as reasonable, when new projections and further data on growth, inflation, wages and expectations would be available, and all members reiterated a data-dependent, meeting-by-meeting approach without pre-committing to a particular rate path. Furthermore, all members stressed another rate hike would likely be necessary unless the inflation outlook improved significantly, while avoiding pre-commitment to a September hike. ECB's Radev said October and December meetings are both live, according to Econostream. He said waiting until second-round effects are fully visible could mean acting too late, while 2.5% is not a "precise dividing line" but "probably around neutral". Radev expects September projections to show higher short-term inflation and subdued growth, adding that tighter financial conditions must be taken into account when making the decision, and noted that there is not enough broad-based evidence to say growth risks are "clearly to the upside". DATA RECAP German GfK Consumer Confidence (Sep) -26.6 vs. Exp. -29.6 (Prev. -29.6)