On Monday (13 July, 9:21 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited a downward trend as geopolitical risks in the Middle East intensified.
Heightened conflict between Iran and the United States led to further military actions over the weekend, with Iranian strikes directed at U.S. locations in several Gulf states and Tehran announcing the closure of the Strait of Hormuz. U.S. President Donald Trump, however, disputed this closure, stating that the passage remained accessible to commercial shipping.
The U.S. carried out its own airstrikes against Iran on Saturday, a response to Iran’s attack on a commercial vessel in the strategic waterway.
These renewed hostilities arrive as investors prepare for the upcoming earnings season, which begins this week with reports from major U.S. banks, including Goldman Sachs and JPMorgan Chase. Analysts are looking to these results for indications on whether strong corporate earnings can sustain the recent rally, much of which has stemmed from enthusiasm surrounding artificial intelligence.
Traders are also watching for U.S. inflation figures slated for later in the week, while a sharp rise in oil prices—the biggest since mid-May—has spurred additional concern over the Federal Reserve’s progress on taming inflation. Fed Chairman Kevin Warsh is scheduled for his initial appearance before Congress since taking office, amid his stated intention to reduce forward guidance on interest rate policy.
Japan’s NIKKEI dropped by 1.83% to 67,304.54. South Korea’s KOSPI plummeted by 5.81% to 7,041.81, and Australia’s ASX 200 declined by 0.29% to 8,780.50.
As for stocks in China, Shanghai’s SSEC fell by 0.89% to 3,960.52. Shenzhen’s SZI slumped by 1.49% to 14,822.98, while Hong Kong’s HSI rose by 0.78% to 24,363.69.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) increased by 0.29% to 52,637.01. NASDAQ gained 0.29% to 26,281.60, and S&P 500 surged 0.42% to 7,575.39. VIX contracted by 5.11% to 15.03.
As for commodities, oil prices increased on Monday after Iran broadened military actions against Gulf nations in response to strikes by the United States, raising concerns over potential disruptions to crude flows through the Strait of Hormuz. Brent futures jumped $3.07, or 4.04%, to $79.08 per barrel, and the WTI futures soared $2.92, or 4.09%, to $74.33 per barrel.
Meanwhile, gold futures slid by 0.78% to $4,081.50 per Troy ounce.
