On Friday (15 May, 9:27 AM, GMT+7, Bangkok time), major indices in the Asia Pacific saw widespread declines, with South Korea’s KOSPI reversing earlier gains that had sent it to a record high above 8,000 points. The market retreat reflected investor caution as discussions continued between U.S. President Donald Trump and Chinese President Xi Jinping, while the focus is on potential shifts in trade and technology policies.
The surge in South Korea’s KOSPI earlier this year, alongside robust gains in Taiwan’s TAIEX, has been fueled by strong demand for semiconductor exports amid widespread enthusiasm for AI. The rally has been led by heavyweight firms such as Samsung Electronics, SK Hynix, and TSMC, propelling both indices to multiple fresh highs and drawing renewed interest to the AI sector.
However, the upward momentum has raised concerns about the heavy reliance on a limited group of AI-driven semiconductor companies. This trend has unfolded against the backdrop of renewed worries that rising oil prices above $100 per barrel could revive inflationary pressures, potentially affecting central bank policy and the broader economic outlook.
On the politics front, risk sentiment shifted after Xi cautioned Trump that mishandling sensitive issues, such as matters regarding Taiwan, could lead to heightened friction or even conflict between the U.S. and China.
Meanwhile, Trump indicated that Beijing appears open to support negotiations with Iran aimed at ending the ongoing war and restoring access through the Strait of Hormuz, but Chinese officials have not explicitly confirmed this diplomatic initiative.
Japan’s NIKKEI fell by 1.30% to 61,837.13. South Korea’s KOSPI slumped by 3.30% to 7,717.92, and Australia’s ASX 200 declined by 0.24% to 8,620.10.
As for stocks in China, Shanghai’s SSEC dropped by 0.79% to 4,144.82. Shenzhen’s SZI plummeted by 1.01% to 15,586.86, and Hong Kong’s HSI contracted by 0.91% to 26,149.44.
The U.S. stock markets edged up on Thursday as the Dow Jones Industrial Average (DJIA) rose by 0.75% to 50,063.46. NASDAQ advanced by 0.88% to 26,635.22, and S&P 500 expanded by 0.77% to 7,501.24. VIX lost 3.41% to 17.26.
As for commodities, oil prices remained relatively unchanged on Thursday, following reports from Iranian state media indicating roughly 30 ships had recently passed through the Strait of Hormuz, while cautions remain as incidents involving an attack on a vessel and the capture of another continued to raise apprehension about supply disruptions. Brent crude futures finished the session up 9 cents or 0.09% to $105.72 per barrel. U.S. West Texas Intermediate crude closed 15 cents higher or 0.15% at $101.17 per barrel.
This morning, Brent futures gained $1.33 or 1.26% to $107.05 per barrel, and the WTI futures escalated $1.33 or 1.31% to $102.50 per barrel.
Meanwhile, gold futures decreased by 1.47% to $4,616.40 per Troy ounce.
