A screen showing the Nikkei Stock Average on the trading floor of Nomura Securities' headquarters in Tokyo on January 11, 2024.
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Asia-Pacific markets were mixed on Monday as Israel and Hezbollah traded attacks on Sunday and investors assessed dovish comments from US Federal Reserve Chairman Jerome Powell.
Powell on Friday hinted at a cut in the federal funds rate but did not say how much of a cut or exactly when.
“The time has come to adjust policy,” the central bank governor said in Jackson Hole, Wyoming. “The direction to move forward is clear, and the timing and pace of rate cuts will depend on upcoming data, the evolving outlook and the balance of risks.”
Last weekend, the Israeli Air Force struck Hezbollah positions in Lebanon shortly after the Iranian-backed militant group fired more than 320 rockets at Israel.
Hezbollah claimed it was retaliation for Israel's assassination last month of a senior commander, Fuad Shukr.
But the group suggested it was not preparing further attacks, while Israel's foreign minister said the country did not want all-out war.
In Asia, investors will assess the People's Bank of China's medium-term lending rate on Monday as well as Singapore's manufacturing data for July.
Japan's Nikkei stock average was down 0.91% at the open, while the Topix was down 0.83%.
South Korea's KOSPI rose 0.22%, while the small-cap KOSDAQ added 0.19%.
Australia's S&P/ASX 200 started the day up 0.34%.
Hong Kong Hang Seng Index futures were at 17,733, above the HSI's last close of 17,612.1.
In the US on Friday, all three major indexes rose following Powell's comments, with the Dow Jones Industrial Average up 1.14% and the Nasdaq Composite up 1.47%. The S&P 500 rose 1.15%.
—CNBC's Alex Harring and Yun Lee contributed to this report.
