On Wednesday (1 July, 9:54 AM, GMT+7, Bangkok time), major indices in the Asia Pacific showed mixed performance, following a robust first half of 2026 for major U.S. indices. Investor sentiment reflected optimism from Wall Street gains, particularly in technology and semiconductor sectors.
During 1H26, the Dow Jones Industrial Average advanced 8.9%, achieving its strongest start to the year since 2021. The S&P 500 recorded a 9.6% increase, while the Nasdaq gained 12.8%. The rally in U.S. markets has been fueled largely by continued strength in chip and artificial intelligence-related stocks, with Micron, Intel, and Advanced Micro Devices collectively adding $2 trillion in market capitalization in the second quarter alone.
Asian equities were also supported by the U.S. economic backdrop, which has seen steady consumer spending and a resilient labor market. This momentum has eased concerns regarding the impact of elevated energy costs and trade tensions, boosting confidence in corporate earnings potential.
On the policy front, traders awaited commentary from Federal Reserve Chair Kevin Warsh, set to speak at the European Central Bank Forum in Sintra, Portugal. Since assuming the role, Warsh has initiated reviews of the central bank’s strategies, signaling a comprehensive reassessment of U.S. monetary policy.
The Fed had unanimously agreed to leave interest rates unchanged at their previous meeting, marking Warsh’s leadership debut. However, persistent strength in employment and higher inflation figures have led markets to anticipate further rate increases as the central bank seeks to manage price pressures. The next policy decision is scheduled for late July.
Notably, market participants also looked ahead to several key economic reports due Wednesday, including the June ADP employment data, ISM manufacturing reading, and final global PMI for manufacturing.
Elsewhere, financial markets in Hong Kong were closed due to a public holiday.
South Korea’s KOSPI dropped by 2.63% to 8,253.22. Australia’s ASX 200 contracted by 0.64% to 8,722.60, while Japan’s NIKKEI surged 0.26% to 70,246.66.
As for stocks in China, Shanghai’s SSEC rose by 0.72% to 4,124.04, and Shenzhen’s SZI increased by 0.19% to 16,236.68.
The U.S. stock markets edged up on Tuesday as the Dow Jones Industrial Average (DJIA) grew by 0.26% to 52,319.20. NASDAQ gained 1.52% to 26,213.72, and S&P 500 advanced by 0.79% to 7,499.36. VIX slumped by 6.80% to 16.45.
As for commodities, oil prices settled lower on Tuesday and were on track for their steepest monthly and quarterly declines since the onset of the COVID-19 pandemic in early 2020. This came as traders monitored the prospect of U.S.-Iran discussions in Doha. Brent crude contracts for August dropped 23 cents, or 0.3%, finishing at $72.92 per barrel. U.S. West Texas Intermediate (WTI) crude ended the session down $1.25, or 1.8%, at $69.50 per barrel.
This morning, the prices exhibited gains after reports indicated that Iran would not hold discussions with U.S. representatives. Brent futures for September rose 28 cents, or 0.38%, to $73.23 per barrel, and the WTI futures were up 30 cents, or 0.43%, to $69.80 per barrel.
Meanwhile, gold futures declined by 1.08% to $3,994.90 per Troy ounce.
