On Wednesday (26 August, 9:55 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific increased amid the latest escalation in U.S.-Canada trade relations, which contributed to a cautious trading environment ahead of significant U.S. inflation data.
On Tuesday, Canada stated it would implement retaliatory tariffs equivalent to the 50% import duties imposed by President Donald Trump over the weekend. The new Canadian measures target over 700 categories of U.S. products, valued at approximately $20 billion, and correspond in scale to recently announced U.S. tariffs on Canadian items. The decision follows the collapse of trade discussions between the two countries.
Attention also turned to the scheduled release of the July personal consumption expenditures (PCE) price index later in the day, which highlights changes in consumer goods and services prices and is closely monitored by the Federal Reserve. Analysts surveyed by Dow Jones predict the report will show a 0.1% increase from the previous month and a 3.6% rise year-over-year. The June data reflected a 0.1% month-on-month decrease and a 3.7% annual pick-up.
Market participants are also monitoring upcoming remarks by Fed Chairman Kevin Warsh on Friday at the central bank’s annual gathering in Jackson Hole, Wyoming. However, there are expectations among some observers that Warsh may not provide detailed guidance ahead of the central bank’s next meeting in September.
Japan’s NIKKEI rose by 0.56% to 66,227.55. South Korea’s KOSPI grew by 1.21% to 6,824.47, while Australia’s ASX 200 slid by 0.01% to 9,164.00.
As for stocks in China, Shanghai’s SSEC advanced by 0.86% to 3,922.97. Shenzhen’s SZI jumped by 1.29% to 13,923.75, and Hong Kong’s HSI surged 0.96% to 25,754.83.
The U.S. stock markets edged up on Tuesday as the Dow Jones Industrial Average (DJIA) gained 0.30% to 53,577.40. NASDAQ added 0.66% to 26,151.30, and S&P 500 increased by 0.32% to 7,677.28. VIX dropped by 2.52% to 15.45.
As for commodities, oil prices settled lower on Tuesday as market participants showed limited concern over new U.S. sanctions imposed on Iran, perceiving the measures as less threatening to global oil supply than potential conflict. Brent crude closed $3.59 lower, a drop of 3.9%, at $88.58 per barrel. U.S. West Texas Intermediate crude finished $2.65, or 3.1%, lower at $82.36 per barrel.
This morning, Brent futures declined $2.23, or 2.52%, to $86.35 per barrel, and the WTI futures lost $1.97, or 2.39%, to $80.39 per barrel.
Meanwhile, gold futures were up 0.64% to $4,724.50 per Troy ounce.
