Asia markets poised for a mixed opening as investors evaluate SCO summit in light of new tariff worries.

Market Overview

• Mixed Opening for Asia-Pacific Markets: Investors are preparing for a mixed opening in Asia-Pacific markets as they evaluate the outcomes of the Shanghai Cooperation Organization meeting in Tianjin, with ongoing tariff uncertainties impacting market sentiment.

• U.S. Court Ruling on Tariffs: A recent ruling by a U.S. federal appeals court declared that most of President Donald Trump's global tariffs are illegal, adding to the uncertainty surrounding trade policies.

Regional Market Performance

• Japan's Nikkei 225: The Nikkei 225 index is expected to open higher, with futures in Chicago at 42,310 and Osaka at 42,400, compared to the previous close of 42,188.79.

• Australia's S&P/ASX 200: In contrast, Australia's S&P/ASX 200 is projected to start lower, with futures indicating a value of 8,886, down from the last close of 8,927.70. The current account balance for the April to June quarter is anticipated, with economists predicting a deficit of 16 billion Australian dollars ($10.49 billion), an increase from the previous quarter's AU$14.7 billion deficit.

• Hong Kong's Hang Seng Index: Futures for the Hang Seng index suggest a weaker opening at 25,463, compared to the last close of 25,617.42.

U.S. Market Context

• U.S. Equity Futures: U.S. equity futures showed little change during early trading hours in Asia, coinciding with a historically poor month for equities, further complicated by the recent court ruling on tariffs.

• Labor Day Holiday: U.S. markets were closed on Monday in observance of the Labor Day public holiday, contributing to the cautious market sentiment.