Stocks rise and oil slips as traders eye Iran threat, Nvidia results
A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between US dollar and South Korean won, SK Hynix and Samsung Electronics Co. stock price at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, on Aug 25, 2026. (Photo: AP/Ahn Young-joon)
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
HONG KONG: Stocks rose and oil dipped on Tuesday (Aug 25) as investors assessed a US plan for the “economic asphyxiation” of Iran, while tech firms struggled following another down day on Wall Street and ahead of earnings from chip titan Nvidia.
With the war against Tehran in its sixth month, Treasury Secretary Scott Bessent said the White House was declaring an “economic D-Day” on the Islamic republic and threatened to hit countries that trade with it.
The threat comes with talks to reopen the Strait of Hormuz stalled and neither side showing any sign of backing down – pushing oil prices up for most of August, which has in turn fanned long-term inflation fears and put pressure on bond markets.
“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told journalists on Monday.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
“We are going to hold everyone accountable, and this is economic asphyxiation of this regime,” he said, adding that countries not joining US sanctions would “share” in Iran’s isolation.
President Donald Trump was calling world leaders with requests to stop interactions with Tehran, Bessent said.
The Treasury Department said Iran’s digital assets, technology, gold, aviation and shipping sectors would be targeted for sanctions.
Both main oil contracts fell more than two per cent on Monday as Bessent’s comments appeared to suggest the United States will hold off military action. They ticked higher in early Asian trade but soon reversed to push further down as the day went on.
His “increasingly aggressive economic campaign against Iran is designed to squeeze Tehran’s access to the global financial system while keeping the pressure economic rather than allowing the market to immediately price another military escalation”, wrote Stephen Innes, global strategist at Quintex Intel.
“For now, oil appears to have heard the message that way, which is doing Washington the considerable favour of taking some inflation pressure out of the system.”
CAN NVIDIA DELIVER?
Equities mostly rose, shrugging off a negative lead from Wall Street.
Tech-rich Seoul reversed early losses to end higher along with Tokyo, Shanghai, Taipei, Singapore, Sydney and Wellington.
Hong Kong was flat, while Manila, Mumbai and Bangkok fell.
London and Paris edged up, while Frankfurt was also up as data showed German growth rose faster than previously estimated in the second quarter.
Investors are looking ahead to the much-anticipated release of earnings from Nvidia, which has become a bellwether for the AI boom.
With vast sums lavished on artificial intelligence investment over the past two years, markets are growing increasingly nervous about whether firms can deliver results to match.
And analysts have warned that even forecast-beating figures can sometimes not be enough.
“Investors are not simply asking whether Nvidia can deliver another strong quarter. They are asking whether it can deliver enough upside to justify already-high expectations, especially with bond yields elevated,” said Charu Chanana at Saxo Markets.
Eyes will also be on other tech names’ releases, including Salesforce and Marvell.
Also in focus is this week’s annual gathering of central bankers, economists and finance chiefs in Jackson Hole, Wyoming, where Federal Reserve boss Kevin Warsh is due to speak.
His comments will be parsed for clues about monetary policy, with inflation still stubbornly high and after Bessent said the Treasury would buy back more of its own bonds to push down borrowing costs after the 30-year yield surged to a 19-year high.
The Canadian dollar edged slightly higher after retreating against the US dollar on Monday as Trump vowed to double tariffs on Canadian vehicles, fanning a trade war.
Trump’s threat comes after the neighbours failed on Friday to reach a deal to avert new 50-per cent US tariffs on select Canadian goods. The duties took effect on Saturday, and Ottawa laid out plans for retaliation.
Source: AFP/ec
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
