On Tuesday (5 May, 9:18 AM, GMT+7, Bangkok time), the Asian stock markets showed limited activity as several major exchanges, including those in Japan, South Korea, and mainland China, were closed for a public holiday.
Investors are closely monitoring the situation in the Strait of Hormuz, where persistent blockades have constrained shipping for months. This disruption continues to underpin elevated energy costs, which may contribute to higher inflation and slower growth.
Analysts note that even if tensions quickly subside, lingering effects are likely for the foreseeable future. According to Wells Fargo Investment Institute, consequences linked to energy markets, industrial output, and risk premiums are expected to persist.
Notably, the Reserve Bank of Australia is slated to announce its policy decision later in the day, with markets anticipating the central bank to raise its interest rates.
Australia’s ASX 200 dropped by 0.79% to 8,628.80, and Hong Kong’s HSI fell by 1.21% to 25,781.01.
The U.S. stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) declined by 1.13% to 48,941.90. NASDAQ lost 0.19% to 25,067.80, and S&P 500 decreased by 0.41% to 7,200.75. VIX surged by 7.65% to 18.29.
As for commodities, oil prices settled higher on Monday, following increased attacks by Iran targeting both the United Arab Emirates and vessels in the Gulf region. The escalation represents the most significant rise in tensions since the U.S. and Iran agreed to a ceasefire at the start of April. Brent crude advanced by $6.27, closing at $114.44 per barrel, marking a 5.8% gain. Meanwhile, U.S. West Texas Intermediate crude settled at $106.42, up $4.48 or 4.4% on the session.
This morning, Brent futures contracted $1.02 or 0.89% to $113.42 per barrel, and the WTI futures slumped $1.89 or 1.78% to $104.53 per barrel.
Meanwhile, gold futures rose by 0.34% to $4,548.70 per Troy ounce.
