Finance

Market Update: Asian Trading on August 3, 2026

Oil prices fell nearly 5% as President Trump announced the cancellation of planned strikes on Iran, hinting at a potential deal regarding the Strait of Hormuz. The Nikkei and KOSPI indices experienced significant drops due to a stronger yen and concerns over chip valuations. China's manufacturing PMI showed slower growth, further impacting market sentiment.

Oil Prices Decline Following Trump's Iran Comments; Asian Markets React

TradingBase News Intelligence

03:49 AM · Updated 05:01 AM · 1 min read

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Executive summary

Oil prices slid nearly 5% on Monday, with a drop of up to 6% at the open, following President Donald Trump's announcement that he had called off planned strikes on Iran and suggested a possible agreement to reopen the Strait of Hormuz. This decline reflects investor expectations that easing tensions between the U.S. and Iran could mitigate risks to global crude supplies.

Trump's claims about a Hormuz deal remain unverified, with Iran denying previous assertions from Trump as false. Reports of an Iranian cruise missile targeting a U.S. oil tanker and incidents involving the UK Navy in the region have raised concerns about ongoing tensions.

U.S. equity futures showed a muted response, rising only about 0.5%, indicating skepticism among investors regarding the de-escalation narrative. In currency markets, the yen surged following a confirmed joint intervention by the U.S. and Japan, with USD/JPY falling below 156.

The Nikkei index fell over 2%, impacted by the stronger yen, while South Korea's KOSPI dropped approximately 4% amid concerns over AI chip demand despite recent strong earnings from major firms like Samsung and SK Hynix.

In economic data, China's manufacturing sector expanded at its slowest pace in four months, with the RatingDog PMI easing to 50.9 in July, missing expectations. This slowdown, combined with a rise in export orders, contributed to a cautious market outlook.

Market impact

This article presents verified public information. Price reaction depends on liquidity and what was already priced in — no directional call is made here.

Institutional framing

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NIC · Impact scores

Global: 68 · Market: 70 · Urgency: 43 · Confidence: 90 · Neutral

Themes: energy

Asset impact

Oil — Neutral (55) · Oil mentioned with balanced cues.
USD — Bullish (55) · USD leans bullish based on headline/body drivers.
JPY — Neutral (55) · JPY mentioned with balanced cues.
US Stocks — Neutral (55) · US Stocks mentioned with balanced cues.
Indices — Neutral (55) · Indices mentioned with balanced cues.
Forex — Neutral (55) · Forex mentioned with balanced cues.
Commodities — Neutral (55) · Commodities mentioned with balanced cues.

Market reaction

USOIL: Price snapshot pending · T-15m / T0 / T+15m / T+60m
DXY: Price snapshot pending · T-15m / T0 / T+15m / T+60m
USDJPY: Price snapshot pending · T-15m / T0 / T+15m / T+60m
SPX: Price snapshot pending · T-15m / T0 / T+15m / T+60m
US30: Price snapshot pending · T-15m / T0 / T+15m / T+60m
FX: Price snapshot pending · T-15m / T0 / T+15m / T+60m

Trading insight

Analysis only. Not a trade signal. Not investment advice. No Entry/TP/SL is generated by NIC.

Scenarios

Two-way reaction likely until the market digests the data surprise vs forecast.
Whipsaw risk is elevated inside the first 15–60 minutes after release.
For XAUUSD, map USD/rate impulse first, then confirm direction on M15 structure.