On Thursday (28 May, 9:34 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited losses as market participants continued to evaluate the uncertain outlook for U.S.-Iran relations during a tenuous ceasefire period.
Sentiment remains cautious amid conflicting signals from high-level negotiations between Washington and Tehran. Secretary of State Marco Rubio indicated some headway in diplomatic discussions, stating the U.S. is committed to a negotiated outcome. However, President Donald Trump emphasized his dissatisfaction with current talks and insisted that Iran would not be permitted to exert control over the Strait of Hormuz, underscoring a significant point of contention as the conflict extends into its fourth month.
Reports from Iranian media suggested Tehran had agreed to restore the flow of commercial shipping through the Strait to levels seen before the hostilities began, contingent upon an agreement with the U.S. The White House, on the other hand, denied these claims, describing reports of a memorandum of understanding as entirely false.
Despite the momentum seen in global equities driven by ongoing enthusiasm for artificial intelligence-related sectors, concerns around persistently high energy costs and inflation have tempered appetite for bonds. Investors are now focused on the April release of the personal consumption expenditures index for further indications regarding the direction of interest rates and broader market trends.
Within the Fed, officials have highlighted the uncertain inflation outlook. Vice Chair Philip Jefferson projected that price pressures will subside as the impacts of tariffs and increased energy prices diminish, although he noted inflation risks may still be skewed higher. Meanwhile, Governor Lisa Cook expressed concern over recent inflation developments and stated she would support higher interest rates if upward trends persist.
Japan’s NIKKEI slid by 0.01% to 64,995.93. South Korea’s KOSPI declined by 0.71% to 8,170.04, and Australia’s ASX 200 contracted by 0.82% to 8,646.30.
As for stocks in China, Shanghai’s SSEC diminished by 0.36% to 4,078.92. Shenzhen’s SZI slumped by 1.11% to 15,561.88, and Hong Kong’s HSI plummeted by 1.64% to 24,913.15.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) rose by 0.36% to 50,644.28. NASDAQ grew by 0.07% to 26,674.73, and S&P 500 increased by 0.02% to 7,520.36. VIX dropped by 4.23% to 16.29.
As for commodities, oil prices settled lower on Wednesday as traders monitored developments surrounding a potential agreement between the U.S. and Iran. Brent crude futures dropped $5.29, or 5.31%, to close at $94.29 per barrel. U.S. West Texas Intermediate crude finished down $5.21, a decline of 5.55%, at $88.68.
However, both benchmarks reversed course in early Thursday trading following reports from Reuters that the U.S. carried out additional airstrikes overnight targeting an Iranian military facility. Brent futures gained $1.66, or 1.76%, to $95.95 per barrel, and the WTI futures surged $1.48, or 1.67%, to $90.16 per barrel.
Meanwhile, gold futures fell by 1.04% to $4,402.20 per Troy ounce.
