CANBERA (dpa-AFX) - Asian stock markets are trading mixed on Tuesday, following the mixed cues from European markets and lack of cues from Wall Street overnight, as traders remain concerned about the Middle East conflict and the spike in crude oil prices which is heightening global inflation and economic growth worries. Asian markets closed mostly higher on Monday.
The US attacks on Iranian tankers and Tehran's threat of a new restricted zone outside the Strait of Hormuz raised concerns about disruptions to energy flows.
Traders also look ahead to the release of crucial U.S. inflation data later in the week, which could offer cues around the US Fed's September interest-rate decision.
Markets are currently pricing in around a 60 percent probability that the US Fed will deliver a 25-basis-point rate hike next week following strong jobs data.
The Australian stock market is notably lower on Tuesday, reversing the slight gains in the previous session, following the mixed cues from European markets and lack of cues from Wall Street overnight. The benchmark S&P/ASX 200 index is falling well below the 9,000 level, with weakness in mining and financial stocks.
The benchmark S&P/ASX 200 Index is losing 40.20 points or 0.45 percent to 8,970.70, after hitting a low of 8,934.20 earlier. The broader All Ordinaries Index is down 39.30 points or 0.43 percent to 9,161.30. Australian stocks closed slightly higher on Monday.
Among the major miners, Rio Tinto is losing almost 1 percent, Fortescue is declining more than 1 percent and BHP Group is edging down 0.4 percent, while Mineral Resources is gaining more than 1 percent.
Oil stocks are mostly lower. Santos is edging up 0.3 percent, while Origin Energy and Woodside Energy are edging down 0.5 percent each. Beach energy is flat
Among tech stocks, Afterpay owner Block, Zip and Appen are edging up 0.4 to 0.5 percent each, while Xero and WiseTech Global are losing almost 2 percent each.
Gold miners are mostly lower. Evolution Mining, Resolute Mining and Genesis Minerals are losing almost 1 percent each, while Northern Star Resources is edging down 0.2 percent. Newmont is gaining almost 1 percent.
Among the big four banks, ANZ Banking is declining more than 1 percent and National Australia Bank is edging down 0.4 percent, while Commonwealth Bank and Westpac are losing almost 1 percent each.
In economic news, Australian consumer sentiment dropped 5.2 percent to 84.4 points in September 2026, driven by fears of rising interest rates and higher fuel costs, according to a survey by Westpac-Melbourne Institute. This is after a 6.0 percent gain in August. ?The index was down almost 12 percent from last year.
In the currency market, the Aussie dollar is trading at $0.721 on Tuesday.
The Japanese stock market is trading slightly higher on Tuesday after opening in the red, extending the gains in the previous two sessions, following the mixed cues from European markets and lack of cues from Wall Street overnight, with the Nikkei 225 moving up to near the 66,500 level, with gains in index heavyweights, financial and technology stocks partially offset by weakness in automakers and exporter stocks.
The benchmark Nikkei 225 Index closed the morning session at 66,445.13, up 45.29 points or 0.07 percent, after hitting a low of 65,763.11 earlier. Japanese shares ended sharply higher on Monday.
Market heavyweight SoftBank Group is jumping more than 6 percent and Uniqlo operator Fast Retailing is edging up 0.5 percent. Among automakers, Honda is losing more than 3 percent and Toyota is declining almost 3 percent.
In the tech space, Advantest is gaining more than 2 percent, Screen Holdings is advancing almost 2 percent and Tokyo Electron is adding almost 1 percent.
In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are gaining almost 1 percent, while Mitsubishi UFJ Financial is edging up 0.3 percent.
The major exporters are mostly lower. Mitsubishi Electric and Sony are declining more than 2 percent each, while Panasonic is slipping more than 3 percent and Canon is down more than 1 percent
Among the other major losers, Taiyo Yuden, Mercari, JTEKT and Alps Alpine are tumbling almost 5 percent each, while Murata Manufacturing, Yamaha Motor and SHIFT are declining more than 4 percent each. Mazda Motor is declining almost 4 percent, while NTN, Nitto Denko, Nissan Motor and TDK are losing more than 3 percent each. Isuzu Motors is down almost 3 percent.
Conversely, Nitori Holdings is surging almost 5 percent and Denka is gaining almost 3 percent.
In economic news, Japan's economy expanded at an annualized rate of 1.4 percent in the second quarter of2026, revised up from the preliminary reading and market estimates of 1.1 percent. It marked the third consecutive quarter of growth. Japan's GDP grew 0.4 percent on quarter in the second quarter of 2026, slightly higher than flash data of 0.3 percent and in line with market forecasts. It was the third straight quarter of expansion.
In the currency market, the U.S. dollar is trading in the higher 153 yen-range on Tuesday.
Elsewhere in Asia, South Korea is up 2.0 percent, while China, Taiwan and Indonesia are higher by between 0.2 and 0.8 percent each. New Zealand, Hong Kong, Singapore and Malaysia are lower by between 0.2 and 0.7 percent each.
On Wall Street, the markets were closed for Labor Day on Monday after closing lower on Friday.
The major European markets turned in a mixed performance on Monday. The U.K.'s FTSE 100 edged down 0.08 percent and Germany's DAX closed 0.15 percent down. France's CAC 40 gained 0.33 percent.
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