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Asian stocks muted in holiday trading, oil prices gainMainland China and Hong Kong markets are shut for Lunar New Year holidays, while US markets will resume trade on Tuesday after observing Presidents' Day holiday on Monday. The yen fluctuated.By CNBCTV18.com February 17, 2026, 6:46:48 AM IST (Published)3 Min ReadAsian shares posted a modest gain on Tuesday as tepid holiday trading kept volumes light, with investors focusing on fresh economic data later this week.

Mainland China and Hong Kong markets are shut for Lunar New Year holidays, while US markets will resume trade on Tuesday after observing Presidents' Day holiday on Monday. The yen fluctuated.

Crude oil prices gained, with traders accounting in heightened geopolitical risk post Iran conducting naval exercises near a crucial shipping corridor prior to talks with the US resuming later on Tuesday.

Oil prices advanced from Friday's close, with West Texas Intermediate near $64 a barrel, with no settlement on Monday due to a US holiday. Brent increased over 1% on Monday to end below $69.

US President Donald Trump said he will be indirectly involved in the talks. Iran wants to make a deal, he said.

Meanwhile, the US rate path remains in focus following the slower-than-expected inflation print on Friday as traders fully priced a Fed cut in July and the strong chance of a move in June. Investors are also paying attention to the shifts in sentiment around artificial intelligence, which may reverberate far beyond the technology sector with the emergence of the so-called AI scare trade.

In the US on Tuesday, Fed Governor Michael Barr will speak on the labor market and AI, while San Francisco Fed President Mary Daly speaks on AI and the economy. Traders will also be watching for ADP private payrolls numbers on Tuesday and the minutes from the Fed’s January meeting on Wednesday for a fresh read on the economy.

Cash trading in Treasuries resumed Tuesday after bonds rallied on Friday in reaction to the benign US inflation data.

Treasury two-year yields were little changed after closing at the lowest level since 2022 on Friday. That came as traders priced in higher chances the Fed will slash rates more than twice this year. Yields on the benchmark 10-year stood at 4.04%.

In Japan, the central bank governor said Prime Minister Sanae Takaichi made no specific requests during a regular meeting to discuss the economy and swap general ideas.

Investors and economists are trying to gauge whether an emboldened Takaichi will try to slow down the central bank’s path of interest hikes to protect economic growth or if she will instead encourage the BOJ to act to help support the yen.

With inputs from Bloomberg

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