On Thursday (21 May, 9:21 AM, GMT+7, Bangkok time), major indices in the Asia Pacific saw an upward trend, mirroring gains in U.S. markets, as investor sentiment improved after President Donald Trump indicated progress in negotiations with Iran. Hopes for a resolution in the Middle East contributed to a pullback in oil prices, which eased concerns over inflation.
Tensions in the Middle East have led to heightened volatility in energy markets, with oil prices surging in recent sessions amid a U.S. blockade of Iranian ports and Iran’s closure of the Strait of Hormuz.
Iran is currently reviewing a revised U.S. proposal as a response to Tehran’s earlier offer, according to local media Tasnim. Iranian President Masoud Pezeshkian stated that all options for avoiding conflict remain on the table. Trump, meanwhile, noted that alternative actions could be taken if negotiations fail, but expressed hope that such measures would not be necessary.
Asian equities had come under pressure over the previous sessions, weighed by persistent inflation risks tied to elevated energy costs, higher global bond yields, and concerns that stock valuations, particularly in the technology sector, had become stretched. Investors have recently reconsidered the likelihood of near-term interest-rate reductions, with some expecting borrowing costs could be further elevated.
On another front in Japan, government data showed that exports grew 14.8% year-on-year in April, the fastest pace since January, buoyed by a rebound in semiconductor sales. Imports also rose more than expected, increasing 9.7% from a year earlier. The country’s trade surplus narrowed to 301.9 billion yen during the period, compared with 643 billion yen in March.
Japan’s NIKKEI rose by 3.53% to 61,917.78. South Korea’s KOSPI jumped by 6.58% to 7,683.53, and Australia’s ASX 200 grew by 1.67% to 8,638.20.
As for stocks in China, Shanghai’s SSEC increased by 0.84% to 4,196.94. Shenzhen’s SZI soared by 1.95% to 15,872.74, and Hong Kong’s HSI surged by 0.66% to 25,821.66.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) gaind 1.31% to 50,009.35. NASDAQ advanced by 1.55% to 26,270.35, and S&P 500 expanded by 1.08% to 7,432.97. VIX declined by 3.43% to 17.44.
As for commodities, oil prices settled lower on Wednesday, following remarks from Donald Trump indicating that discussions with Iran were nearing completion. However, traders maintained a cautious outlook as instability affecting Middle Eastern supply persisted. Brent crude futures dropped $6.26, or 5.63%, closing at $105.02 per barrel, while U.S. West Texas Intermediate futures finished $5.89 lower, or 5.66%, at $98.26 per barrel.
This morning, Brent futures escalated 40 cents, or 0.38%, to $105.42 per barrel, and the WTI futures climbed 45 cents, or 0.46%, to $98.71 per barrel.
Meanwhile, gold futures added 0.47% to $4,556.50 per Troy ounce.
