On Wednesday (8 July, 9:17 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific posted losses, as growing hostilities in the Middle East dampened investor confidence.
The selloff followed news that the United States had launched a set of strikes targeting Iran in response to recent incidents involving attacks on three commercial vessels near the Strait of Hormuz, according to a U.S. Central Command statement. Furthermore, the U.S. Treasury had withdrawn a license that allowed Iranian oil exports.
These developments have added to prevailing worries about energy market volatility and heightened the risk of renewed disruptions, challenging the progress made with the temporary U.S.-Iran truce. Equity markets are contending with increased uncertainty, alongside existing nervousness about the stocks linked to artificial intelligence.
Market participants are also awaiting the release of minutes from June’s Federal Open Market Committee meeting, which are expected later on Wednesday stateside. These will give greater clarity on Chair Kevin Warsh’s inaugural meeting, where the central bank kept interest rates steady but indicated that further tightening remains possible if inflation persists.
Japan’s NIKKEI fell by 0.75% to 67,741.96. South Korea’s KOSPI contracted by 1.90% to 7,511.09, and Australia’s ASX 200 lost 0.96% to 8,719.50.
As for stocks in China, Shanghai’s SSEC decreased by 0.48% to 3,970.96, Shenzhen’s SZI dropped by 1.94% to 14,929.20, while Hong Kong’s HSI jumped by 1.98% to 23,961.16.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) declined by 0.25% to 52,925.15. NASDAQ slumped by 1.16% to 25,818.69, and S&P 500 diminished by 0.45% to 7,503.85. VIX surged 3.60% to 16.13.
As for commodities, oil prices settled higher on Tuesday following an escalation of tensions in the Strait of Hormuz. Iranian forces targeted three commercial ships in the key waterway, while the U.S. responded with license revocation and retaliation. Brent crude finished the session $2.17 higher, closing at $74.16 per barrel, marking a 3.01% increase. U.S. West Texas Intermediate crude advanced by $1.89, or 2.76%, ending the session at $70.44 per barrel.
This morning, Brent futures added $1.75, or 2.36%, to $75.91 per barrel, and the WTI futures gained $1.76, or 2.50%, to $72.20 per barrel.
Meanwhile, gold futures slid by 0.88% to $4,120.90 per Troy ounce.
