Israel-Hezbollah attack, Powell Jackson Hole

Asia-Pacific stocks were mixed on Monday as tensions with Israel and Hezbollah escalated in the Middle East. Trade Strikewhile investors assessed dovish comments from Federal Reserve Chairman Jerome Powell.

Over the weekend, Reuters reported that the Israeli Air Force attacked Hezbollah targets in Lebanon, shortly after the Iran-backed militant group fired more than 320 rockets into Israel.

Hezbollah said the move was in retaliation for Israel’s assassination of senior commander Fuad Shukr last month.

However, Reuters added that the group said it was not prepared to carry out more attacks, while Israel’s foreign minister said the country did not want an all-out war.

Oil prices rose following the attack, with Brent crude up 0.62% at $79.52 and U.S. West Texas Intermediate crude up 0.63% at $75.34.

In Asia, investors will assess China’s central bank’s medium-term lending rate and Singapore’s July manufacturing data on Monday.

Japanese Nikkei 225 Index The Dow Jones fell 1.09% and the Topix fell 1.13%. The yen rose 0.33% to 143.9 against the dollar, reaching its highest level since the stock market crash on August 5.

South Korea Kospi The index fell 0.24%, while the small-cap Kosdaq fell 0.96%.

Australia S&P/ASX 200 Up 0.68%.

Hongkong Hang Seng Index It rose 0.99%, but mainland China’s CSI 300 index fell 0.15%.

On Friday, the three major U.S. stock indexes all rose after Powell’s speech. Dow Jones Industrial Average It rose by 1.14%, while Nasdaq Composite Index Up 1.47%. S&P 500 Up 1.15%.

Powell Friday Hints at lowering federal funds ratebut he did not disclose the extent and specific time of the reduction.

“Now is the time for a policy adjustment,” the central bank governor said in Jackson Hole, Wyoming. “The way forward is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

—CNBC’s Alex Harring, Yun Li and Jeff Cox contributed to this report.