On Wednesday morning (4 February, 9:29 AM, GMT+7, Bangkok time), major indices in the Asia Pacific traded mixed after steep falls in U.S. technology stocks that unsettled investor sentiment. Investors shifted capital towards sectors viewed as more linked to economic cycles, following renewed concerns that developments in artificial intelligence could disrupt software industry profits and sector stability in the United States.
On the policy front, Richmond Federal Reserve President Tom Barkin stated that recent monetary policy support has contributed to resilience in the labor market, while attention now turns to achieving the central bank’s inflation goal. Separately, Fed Governor Stephen Miran signaled that a persistent lack of significant inflationary pressure suggests an additional rate cut will be warranted before the end of the year.
South Korea’s KOSPI surged by 1.32% to 5,358.14. Australia’s ASX 200 rose by 0.54% to 8,905.10, while Japan’s NIKKEI dropped by 0.55% to 54,421.37.
As for stocks in China, Shenzhen’s SZI fell by 0.58% to 14,045.72. Hong Kong’s HSI slid by 0.03% to 26,826.05, while Shanghai’s SSEC increased by 0.32% to 4,080.66.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) declined by 0.34% to 49,240.99. NASDAQ lost 1.43% to 23,255.18, and S&P 500 decreased by 0.84% to 6,917.81. VIX jumped by 10.16% to 18.00.
As for commodities, oil prices settled higher on Tuesday amid investor concerns over potential interruptions in diplomatic efforts to ease tensions between the United States and Iran, following reports that a U.S. military operation brought down an Iranian drone and armed boats approached a U.S.-flagged ship in the Strait of Hormuz. Brent crude futures closed $1.03 higher, or up 1.6%, at $67.33 per barrel. U.S. West Texas Intermediate crude settled with a gain of $1.07, or 1.7%, at $63.21.
This morning, Brent crude futures added 79 cents, or 1.17%, to $68.12 per barrel, and the WTI grew 82 cents, or 1.30%, to $64.03 per barrel.
Meanwhile, gold futures soared 3.01% to $5,083.30 per Troy ounce.
