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August 4, 2026 - 00:13
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(Bloomberg) — Stocks in Asia were set for a muted open Tuesday as investors weighed a rebound in US equities against lingering uncertainty over the Middle East and whether the artificial intelligence-fueled rally has further to run. Oil held Monday’s losses.Equity-index futures for Japan pointed to a decline, with Hong Kong’s and Australia’s little changed. US contracts were steady after the S&P 500 and Nasdaq 100 both rose more than 1% overnight, helped by gains in technology shares. Palantir Technologies Inc. gained in after hours trading after raising revenue and income forecasts for the full year. Elsewhere, Treasury yields fell after last week’s intense volatility.US crude was steady in early trading after tumbling about 5% Monday as President Donald Trump said current negotiations were Iran’s “last chance” after calling off a planned attack. Still, Tehran has yet to signal it will restore free passage through the Strait of Hormuz, which before the conflict carried about a fifth of global oil supply.Monday’s revival in US technology shares offered investors some relief, even as uncertainty in the Middle East and lofty AI valuations kept caution elevated. The next test comes with another busy week of corporate earnings, as investors look for evidence that heavy spending on AI is translating into stronger growth and profits.“Earnings will remain the primary focus, with roughly 15% of the S&P 500 by market capitalization scheduled to report,” said Matt Orton, chief market strategist at Raymond James Investment Management.In Asia, The yen held steady through the New York trading session on Monday, after a sharp advance earlier in the day that sparked speculation authorities may have intervened to support the currency again after last week’s coordinated action between the US and Japan.The Japanese currency traded around 157.40 per dollar early Tuesday.In the US, of the 307 S&P 500 companies that have reported so far this season through Friday, 86% beat analysts’ forecasts for EPS. On sales, 68% of companies have positively surprised, while 15% missed.SpaceX’s inaugural report as a public company is due on Tuesday. It’s also set the stage for one of the largest share unlocks in capital markets history, with as much as $116 billion worth of stock becoming eligible for sale for the first time next month. Elon Musk’s company has fallen below its IPO price, closing on Monday at $114.46.Still, the on-again, off-again nature of US-Iran diplomacy may mean earnings and jobs data will have to do the heavy lifting for the bulls this week, according to Chris Larkin at E*Trade from Morgan Stanley.Meanwhile, in the countdown to a slew of jobs figures, data showed US manufacturing activity expanded in July at the fastest pace in more than four years as demand remained strong, production surged and firms added workers.Corporate Highlights:Boeing Co. received sign off for the 737 Max 7 from the Federal Aviation Administration, ending a drawn-out certification process that was upended by two fatal crashes and quality lapses at the US planemaker. Marriott International Inc. said that room growth for 2026 would likely come in at the lower end of earlier guidance, driven by construction delays in the Middle East. Michigan health authorities were in touch with Taco Bell’s parent company, Yum! Brands Inc., about a parasitic outbreak in early July, weeks before the company officially alerted consumers. Some of the main moves in markets:StocksHang Seng futures were little changed as of 7:07 a.m. Tokyo time S&P/ASX 200 futures were unchanged Nikkei 225 futures fell 0.6% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1510 The Japanese yen fell 0.1% to 157.37 per dollar The offshore yuan was little changed at 6.7573 per dollar The Australian dollar was unchanged at $0.7000 CryptocurrenciesBitcoin fell 0.5% to $63,418.47 Ether fell 0.7% to $1,855.29 CommoditiesSpot gold was unchanged at $4,054.33 an ounce West Texas Intermediate crude fell 0.4% to $80.01 a barrel This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
