On Friday (24 July, 9:20 AM, GMT+7, Bangkok time), major indices in the Asia Pacific retreated, pressured by elevated oil prices and escalating Middle East tensions, while investors assessed the impact of upcoming U.S. trade measures.
The Trump administration will begin enforcing new tariffs after midnight ET on Friday. These fresh duties, tied to concerns about forced-labor practices, will affect 60 countries, according to the U.S. Trade Representative’s office. The targeted nations account for 99.4% of the U.S.’s total trade.
On the geopolitical front, President Donald Trump signaled a potential intensification of U.S. actions against Iran following an attack by the Houthis on two Saudi-owned oil tankers in the Red Sea. Regional instability has heightened concerns about possible interruptions to global crude supply chains, with Brent crude prices hovering around the $100 mark.
The surge in oil prices has added to selling pressure in technology stocks amid growing skepticism about returns from investments in AI and worries about persistent price pressures. Market pricing now fully anticipates that the Federal Reserve will implement a rate hike by September.
Meanwhile, Japanese economic data showed the nation’s core inflation rose to 1.6% year-on-year in June, marking its first acceleration since March. This figure matched expectations from analysts surveyed by Reuters. The latest rise in inflation is linked to climbing energy prices spreading into other parts of the economy.
Japan’s NIKKEI slumped by 3.06% to 64,393.33. South Korea’s KOSPI plummeted by 3.66% to 6,837.49, and Australia’s ASX 200 declined by 0.51% to 8,793.90.
As for stocks in China, Shanghai’s SSEC dropped by 0.66% to 3,851.24. Shenzhen’s SZI contracted by 0.89% to 13,997.00, and Hong Kong’s HSI fell by 1.35% to 24,871.53.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) lost 0.97% to 51,711.65. NASDAQ decreased by 2.15% to 25,137.69, and S&P 500 shrank by 1.21% to 7,408.30. VIX jumped by 12.38% to 18.70.
As for commodities, oil prices settled higher on Thursday as prices surpassed $100 per barrel, driven by supply concerns after two Saudi oil tankers were reportedly attacked in the Red Sea by Yemen’s Houthis. Brent crude contracts advanced $6.62, or 7%, to settle at $100.69 a barrel, while U.S. West Texas Intermediate rose by $5.36, or 6.2%, at the close.
This morning, Brent futures dropped 49 cents, or 0.49%, to $100.20 per barrel, and the WTI futures were down 48 cents, or 0.52%, to $91.71 per barrel.
Meanwhile, gold futures slid by 0.06% to $4,047.60 per Troy ounce.
