Asian Markets Await Kevin Warsh Speech Amid Iran Conflict

Asian stock markets traded mostly higher on August 28, 2026, though gains remained tempered as investors awaited a speech by Kevin Warsh, Chair of the Federal Reserve, at the Jackson Hole symposium. Market participants are seeking clarity on interest rate trajectories and the Federal Open Market Committee's September policy meeting, as inflation has remained above the 2% target for six consecutive years. While futures indicate a 35% chance of a rate hike on September 16, analysts suggest Warsh may focus on inflation control without providing specific forward guidance.

Economic volatility is compounded by a six-month war between the United States and Iran, which has spiked energy costs and pressured long-term Treasury yields. The U.S. Treasury Department recently increased its buyback program after 30-year Treasury yields hit their highest level since 2007. In the Strait of Hormuz, which handles one-fifth of global oil supplies, the U.S. government is applying economic pressure on Iran to reopen the waterway to cargo and tanker traffic.

Recent diplomatic efforts include a renewed push by Qatar to facilitate peace talks. Additionally, Iran and Oman have agreed to a temporary maritime corridor to administer traffic and share revenues in the Strait of Hormuz. In regional news, Japan's Ministry of Internal Affairs and Communications reported that August inflation in the Tokyo region rose 1.9% year-on-year, matching market expectations.