On Monday (8 June, 9:17 AM, GMT+7, Bangkok time), major indices in the Asia Pacific declined, led by a sharp drop in South Korea’s Kospi. Market participants pointed to ongoing worries about persistent inflation and higher oil prices as key factors driving uncertainty. Additionally, some are reconsidering the recent gains in AI-related stocks, questioning whether these valuations can be sustained.
Political tensions weighed on sentiment after Iranian forces reportedly launched a missile strike, sparking renewed doubts about the ceasefire agreement between the U.S. and Iran. The action followed statements from the Iranian parliament’s speaker, who asserted that American naval blockade and perceived violations in Lebanon marked breaches of the ceasefire terms.
Meanwhile, the U.S. labor market on Friday delivered an upside surprise in May. Nonfarm payrolls expanded by 172,000, according to the Bureau of Labor Statistics, surpassing economists’ expectations of 80,000 new jobs. Despite a slight decrease from the revised April figure of 179,000, the jobless rate remained unchanged at 4.3%, aligning with forecasts.
Looking ahead, traders are preparing for a pivotal week featuring fresh inflation readings. Furthermore, attention will be on the highly anticipated stock market debut of SpaceX, set for Friday. The initial public offering is projected to rank among the biggest on record and will provide a significant test for elevated valuations in the AI sector.
Japan’s NIKKEI fell by 3.98% to 63,935.18. South Korea’s KOSPI plummeted by 6.18% to 7,656.39, and Australia’s ASX 200 slid by 0.70% to 8,625.10.
As for stocks in China, Shanghai’s SSEC diminished by 1.03% to 3,986.17. Shenzhen’s SZI contracted by 1.64% to 15,063.28, and Hong Kong’s HSI declined by 1.25% to 24,649.03.
The U.S. stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) dipped by 1.35% to 50,866.78. NASDAQ lost 4.18% to 25,709.43, and S&P 500 retreated 2.64% to 7,383.74. VIX jumped by 39.68% to 21.51.
As for commodities, oil prices settled lower on Friday as traders saw diminishing risk of escalation between the U.S. and Iran. Brent crude closed at $93.09 per barrel, representing a decline of $1.94, or 2.04%. U.S. West Texas Intermediate crude dropped $2.50 to settle at $90.54 per barrel, a loss of 2.69%.
Nevertheless, market sentiment shifted earlier in the week, with both benchmarks moving higher on Monday. The gains followed renewed Israeli airstrikes on Lebanon over the weekend, despite an existing truce. The developments reduced expectations for a broader regional ceasefire and raised concerns about potential disruptions to oil shipments in the Strait of Hormuz. Brent futures gained $3.14, or 3.37%, to $96.23 per barrel, and the WTI futures surged $3.11, or 3.43%, to $93.65 per barrel.
Meanwhile, gold futures decreased by 0.45% to $4,345.70 per Troy ounce.
