On Monday (24 August, 9:24 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited a downward trend, with investors contending with the impact of climbing global bond yields alongside geopolitical concerns stemming from the Middle East.
Investor sentiment deteriorated amid continued hostilities between the United States and Iran. The Trump administration reiterated calls for U.S. allies and international partners to halt business dealings with Iran, warning of stringent steps aimed at curtailing economic activity with the country.
Expectations of protracted conflict in the region have helped keep oil prices elevated, increasing worries about inflationary pressures.
This week’s calendar includes several events likely to drive further market volatility. Investors will closely watch the release of the July personal consumption expenditures price index, set to be released on Wednesday. Additionally, all eyes are on the Federal Reserve’s annual symposium in Jackson Hole, with a speech by Fed Chair Kevin Warsh anticipated to provide further guidance.
Corporate earnings from the AI sector are also in focus, with results from Nvidia and Marvell Technology scheduled for Wednesday and Thursday, respectively. Reports indicated that Nvidia notified customers of price increases exceeding 15% for servers featuring its Vera Rubin and Blackwell processors, adding to market concerns about rising hardware expenses potentially undermining returns from significant investments in AI.
Japan’s NIKKEI decreased by 0.33% to 65,797.53. South Korea’s KOSPI slumped by 2.68% to 6,727.42, while Australia’s ASX 200 rose by 0.70% to 9,122.60.
As for stocks in China, Shanghai’s SSEC contracted by 0.30% to 3,893.50. Shenzhen’s SZI dropped by 1.41% to 13,895.79, and Hong Kong’s HSI plummeted by 2.13% to 25,455.87.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) increased by 0.98% to 53,277.01. NASDAQ surged 0.44% to 26,180.45, and S&P 500 gained 0.43% to 7,674.37. VIX fell by 5.50% to 15.13.
As for commodities, oil prices settled higher on Friday following statements from U.S. President Donald Trump, indicating that economic sanctions could be placed on nations conducting trade with Iran. Brent crude finished the session at $94.39 per barrel, registering a 61-cent gain, or 0.65%. U.S. West Texas Intermediate crude closed at $87.06 a barrel, up by 23 cents or 0.26%.
However, the upward momentum paused on Monday as traders opted to lock in gains ahead of the potential sanctions, raising concerns over possible disruptions to oil flows from the region. Brent futures dipped $1.72, or 1.82%, to $92.67 per barrel, and the WTI futures lost $1.72, or 1.98%, to $85.34 per barrel.
Meanwhile, gold futures added 0.53% to $4,705.20 per Troy ounce.
