On Wednesday (15 July, 9:15 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited an upward trend, following inflation data from the U.S. that came in softer than expected, raising investor hopes that the Federal Reserve may keep its monetary tightening in check this year.
According to the latest figures, the consumer price index slipped 0.4% in June from the month before, bringing the year-on-year rate to 3.5%. Market forecasts had pointed to only a 0.2% monthly drop and an annual figure of 3.8%.
The inflation release prompted market participants to trim back expectations for an imminent interest rate hike from the Fed. Odds of a rate increase at the central bank’s upcoming July meeting fell sharply—from 42% to 17%, as reflected in CME’s FedWatch Tool. Despite this shift, investors are still largely factoring in the possibility of higher rates later in the year, assigning a 63% chance for a quarter or half a percentage point higher after September’s meeting.
Meanwhile, traders are awaiting a series of quarterly earnings reports from major U.S. corporations scheduled for Wednesday, including United Airlines, Morgan Stanley, Johnson & Johnson, and BlackRock.
Geopolitical tensions in the Middle East also remained in the spotlight. A new series of U.S. airstrikes on Iran contributed to upward momentum in oil prices. At the same time, President Donald Trump announced that his administration would no longer pursue its plan to require vessels to pay a 20% fee to pass through the Strait of Hormuz.
In China, the nation’s economy expanded 4.3% in the second quarter, marking the slowest pace since 2022, according to figures released by the National Statistics Bureau. The result missed the 4.5% growth expected by economists and was lower than the 5% recorded in the previous quarter, as weakening investment and subdued consumer spending continued to weigh on the growth outlook.
Japan’s NIKKEI rose by 0.81% to 68,291.26. South Korea’s KOSPI soared by 6.22% to 7,283.57, and Australia’s ASX 200 grew by 0.35% to 8,839.10.
As for stocks in China, Shanghai’s SSEC increased by 0.21% to 3,975.53. Shenzhen’s SZI expanded by 0.36% to 14,978.09, and Hong Kong’s HSI jumped by 1.41% to 24,685.06.
The U.S. stock markets edged up on Tuesday as the Dow Jones Industrial Average (DJIA) climbed by 0.02% to 52,508.27. NASDAQ surged 0.90% to 26,107.00, and S&P 500 gained 0.38% to 7,543.59. VIX declined by 3.85% to 16.50.
As for commodities, oil prices settled higher on Tuesday following the restoration of a U.S. naval blockade on Iran, which risks limiting the movement of oil shipments through the Strait of Hormuz. Brent crude increased by $1.43, or 1.7%, closing at $84.73 per barrel. U.S. West Texas Intermediate (WTI) crude rose $1.20, or 1.5%, ending the session at $79.34 a barrel.
This morning, Brent futures were up $1.17, or 1.38%, to $85.90 per barrel, and the WTI futures escalated 96 cents, or 1.21%, to $80.30 per barrel.
Meanwhile, gold futures contracted by 0.58% to $4,045.90 per Troy ounce.
