Mixed open expected in Asia-Pacific markets amid rising Middle East tensions, Powell hints at rate cuts.

• Following dovish comments by U.S. Federal Reserve Chairman Jerome Powell on Friday and after Israel and Hezbollah traded strikes on Sunday, traders in Asia will also return to the markets.
• On Monday, the central bank of China will announce its medium-term lending rate, while Singapore will release its manufacturing data for July.

On Monday, Asia-Pacific markets opened with mixed sentiment as Israel and Hezbollah engaged in strikes on Sunday, while investors evaluated the dovish remarks made by U.S. Federal Reserve Chairman Jerome Powell on Friday.

Powell indicated that he would signal cuts to the Federal Funds rate, but did not specify the timing or extent of the reductions.

"The central bank leader stated at Jackson Hole, Wyoming that it is time for policy adjustment. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

Over the weekend, Hezbollah targets in Lebanon were struck by Israel's Air Force, just before the Iran-backed armed group launched over 320 rockets toward Israel.

Fuad Shukr's assassination last month by Israel led to Hezbollah's retaliation, the group stated.

While Israel's Foreign Minister stated that the country did not want a full-scale war, the group signaled that it was not planning to launch more strikes.

On Monday, investors will evaluate medium-term lending rates from China's central bank and Singapore's manufacturing figures for July in Asia.

The S&P/ASX 200 futures for Australia were at 8,025, a slight increase from its previous closing price of 8,023.9.

While Japan's futures indicated a weaker opening, the Chicago futures contract stood at 38,055 and its Osaka counterpart at 38,280, both lower than the previous close of 38,364.27.

The HSI's last close of 17,612.1 was surpassed by the Hong Kong futures, which stood at 17,733.

In the U.S. on Friday, all three major indexes increased following Powell's comments. The Dow Jones Industrial Average rose by 1.14%, the Nasdaq Composite advanced by 1.47%, and the S&P 500 gained 1.15%.

—CNBC's Alex Harring and Yun Li contributed to this report.