On Monday (10 August, 9:13 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific advanced as sentiment was influenced by recent developments in the Middle East and U.S. labor data.
Investor sentiment regarding a potential agreement between the United States and Iran over maritime access through the Strait of Hormuz weakened after Iran denied that it was participating in direct talks with Washington. Iran and Oman concluded the weekend without finalizing any arrangements to restore transit, with Tehran reiterating a series of demands for the U.S. that underscored ongoing challenges to securing a deal.
Statements from Treasury Secretary Scott Bessent last week had signaled the possibility of an agreement. However, President Donald Trump clarified on Sunday that negotiations were only occurring at a limited level and emphasized the continuation of economic pressure on Iran. These remarks came after Trump had issued warnings about potential airstrikes but ultimately opted to maintain a diplomatic approach.
On the economic front, U.S. equity markets ended the prior week higher, buoyed by labor market data that surprised on the downside. The July nonfarm payrolls report recorded a seasonally adjusted decline of 23,000 jobs, falling short of expectations for a substantial 83,000 increase. This decreased the perceived probability of a Federal Reserve rate hike in September to 44%, a drop from 67% the previous week, according to the CME FedWatch tool.
Attention now turns to the upcoming consumer and producer price data due this week, with investors watching closely for further indications of inflation trends.
Japan’s NIKKEI jumped by 2.04% to 66,945.99. South Korea’s KOSPI rose by 1.14% to 6,330.18, while Australia’s ASX 200 declined by 0.32% to 9,234.30.
As for stocks in China, Shanghai’s SSEC grew by 0.52% to 3,960.61. Hong Kong’s HSI surged 0.74% to 25,859.24, while Shenzhen’s SZI dropped by 0.32% to 14,265.55.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) increased by 0.28% to 54,036.93. NASDAQ gained 1.30% to 26,690.61, and S&P 500 added 0.62% to 7,757.64. VIX fell by 1.65% to 14.90.
As for commodities, oil prices climbed on Monday as investors weighed unresolved questions about when the Strait of Hormuz might resume normal operations. Brent futures climbed $1.03, or 1.23%, to $84.58 per barrel, and the WTI futures soared 77 cents, or 0.98%, to $78.95 per barrel.
Meanwhile, gold futures slid by 0.36% to $4,383.70 per Troy ounce.
