Asian equity markets remain under pressure at the start of the week, as risk sentiment turns sour due to renewed tensions in the Middle East and a sharp increase in Federal Reserve (Fed) interest rate hike expectations.

Iran’s Islamic Revolutionary Guard Corps (IRGC) on Monday that its aerospace forces carried out retaliatory drone and ballistic missile strikes against US targets at two air bases in Jordan earlier in the day, Reuters reported.

NBC Economics and Strategy report that U.S. nominal personal income rose 0.4% in July, double expectations, while spending increased 0.2% and real disposable income climbed 0.4% with flat real spending.

The USD/CAD pair edges lower to around 1.3890 during the Asian trading hours on Monday. Renewed tensions between the US and Iran boost crude oil prices, supporting the commodity-linked Canadian Dollar (CAD) against the US Dollar (USD).

Gold price (XAU/USD) attracts some sellers to near $4,445 during the early Asian trading hours on Monday. The precious metal edges lower on a surprisingly hawkish speech by Federal Reserve (Fed) Chairman Kevin Warsh at the Jackson Hole economic symposium. 

Australia Private Sector Credit (YoY) declined to 8.4% in July from previous 8.5%

China’s Manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in August, compared to 49.2 in the previous reading, China’s National Bureau of Statistics (NBS) reported on Monday. The reading came in above the market consensus of 49.7 in the reported month. 

Australia Private Sector Credit (MoM) came in at 0.6% below forecasts (0.7%) in July

China NBS Non-Manufacturing PMI remains at 49 in August

China NBS Manufacturing PMI above expectations (49.7) in August: Actual (49.8)

Australia Company Gross Operating Profits (QoQ) came in at 1.8%, below expectations (2%) in 2Q

The EUR/USD pair gathers strength to around 1.1590 during the early Asian trading hours on Monday. The US Dollar (USD) edges lower against the Euro (EUR) despite hawkish remarks from Federal Reserve (Fed) Chair Kevin Warsh.

South Korea Service Sector Output: -1.3% (July) vs previous 0.7%

US Central Command (CENTCOM) struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz, following weeks of relative calm, Bloomberg reported on Sunday.

DBS Group strategists Taimur Baig and Nathan Chow forecast Vietnam’s goods exports to maintain strong double-digit growth at 27% year-on-year in August 2026, led by electronics and supported by external demand.

DBS Group Research economists Radhika Rao and Chua Han Teng note that Bangko Sentral ng Pilipinas (BSP) raised its policy rate by 25 bps to 5.0% to anchor inflation expectations and support the Peso.

ING’s Chris Turner reports that the Korean Won (KRW) continues to advance, driven by back-to-back Bank of Korea (BoK) rate hikes to 3.00% and a Dot Plot pointing to 3.25% in six months.

DBS Group strategists Taimur Baig and Nathan Chow expect Bank Negara Malaysia (BNM) to keep its Overnight Policy Rate unchanged at 2.75% on September 3, maintaining the stance adopted after its July 2025 insurance cut.

Commerzbank’s Volkmar Baur challenges recent internal analysis on CNY undervaluation and exports, arguing that China’s exchange-rate management and gold purchases point to deliberate weakening.

United Kingdom CFTC GBP NC Net Positions rose from previous £-54.6K to £-44.5K

Japan CFTC JPY NC Net Positions fell from previous ¥-52.9K to ¥-63.3K

DBS Group strategists Taimur Baig and Nathan Chow expect South Korea’s August exports to stay strong near 60% year-on-year, underpinning the outlook for the KOSPI and Korean Won (KRW) even as growth moderates from June’s peak.

The Bank of England (BoE) Governor Andrew Bailey said that he doesn’t see significant second-round inflation effects in the UK, in an interview with Bloomberg TV at Jackson Hole.

Martin Kocher, the Governor of the Austrian National Bank and member of the European Central Bank (ECB), said in an interview with Bloomberg that Europe’s economy shows more momentum.

The Chicago Fed President Austan Goolsbee commented on a CNBC interview at the Jackson Hole Symposium that he agreed with Fed Chair Kevin Warsh about the details of the economy, adding that “inflation is the Fed’s main issue right now.”

TradingKey - O presidente do Fed, Kevin Warsh, proferiu um discurso no simpósio anual do Federal Reserve em Jackson Hole, Wyoming.Ele afirmou que o desempenho geral da economia dos EUA tem sido impres

ING’s Adam Antoniak expects Poland’s 2Q26 GDP flash estimate to be confirmed at 3.8% year-on-year, with fixed investment rebounding strongly thanks to EU and RRF-funded projects. Private consumption is seen slowing slightly as higher fuel prices and weaker wage growth weigh on purchasing power.

Societe Generale’s Reo Sakida and Jin Kenzaki note that August Tokyo CPI was broadly in line with expectations, with renewed energy subsidies weighing on inflation and likely to drag on CPI through October.

Commerzbank’s Dr. Ralph Solveen and colleagues say German GDP has surprised on the upside, expanding around 0.35% per quarter over the last three quarters, driven mainly by stronger exports to EU partners.

Royal Bank of Canada (RBC) strategists analyze escalating trade tensions between Canada and the United States (US) and their impact on both economies.