On Monday (20 April, 9:51 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited an upward trend as investors remained focused on potential escalations in tensions between Iran and the United States.
Renewed instability in the Middle East followed a U.S. military operation, where President Donald Trump confirmed that a U.S. Navy destroyer disabled and boarded an Iranian cargo ship in the Gulf of Oman. The incident marked a new phase in the ongoing blockade, which saw Iran fire on merchant vessels passing through the Strait of Hormuz on Sunday.
Trump reiterated on Sunday that the U.S. would target significant infrastructure in Iran, including power plants and bridges, unless Iran concedes to U.S. demands for resolving the conflict. Tehran declared that the blockade violates a previously established ceasefire and cited the action as the reason for canceling talks that were planned in Islamabad.
Concern over renewed confrontation in the Strait of Hormuz is raising the prospect of market volatility. Over the last two weeks, risk premiums associated with the conflict had diminished following the ceasefire, but uncertainty has returned with negotiations stalling. The ceasefire agreement is due to expire on Tuesday, shifting attention to whether both sides will renew talks to defuse tensions and restore maritime activity.
In China, authorities maintained the one-year and five-year loan prime rates at 3.0% and 3.5% respectively, marking the eleventh consecutive month of no change. The decision follows a period of accelerating economic growth, as the country reported first-quarter GDP growth of 5%, up from 4.5% in the previous quarter.
Japan’s NIKKEI rose by 0.97% to 59,045.45. South Korea’s KOSPI surged by 1.28% to 6,271.42, and Australia’s ASX 200 climbed by 0.04% to 8,950.50.
As for stocks in China, Shanghai’s SSEC grew by 0.66% to 4,078.10. Shenzhen’s SZI expanded by 0.75% to 14,997.47, and Hong Kong’s HSI gained 0.77% to 26,360.94.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) jumped by 1.79% to 49,447.43. NASDAQ added 1.52% to 24,468.48, and S&P 500 escalated by 1.20% to 7,126.06. VIX dropped by 2.56% to 17.48.
As for commodities, oil prices settled lower on Friday after Iran opened the Strait of Hormuz for all commercial shipping during the ceasefire, and President Donald Trump stated that Iran had committed to keeping the waterway open permanently. Brent crude futures declined $9.01, or 9.07%, ending at $90.38 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures fell $10.48, or 11.45%, to settle at $83.85 per barrel.
However, the prices rebounded on Monday following reports that the Strait of Hormuz had been re-sealed. This came after both the U.S. and Iran accused each other of breaching their ceasefire by attacking vessels during the weekend. Brent futures increased $4.71 or 5.21% to $95.09 per barrel, and the WTI futures soared $4.95 or 5.90% to $88.80 per barrel.
Meanwhile, gold futures declined by 1.30% to $4,816.00 per Troy ounce.
