On Tuesday (8 September, 9:16 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific displayed a varied performance as escalating concerns surrounding prolonged conflict between the U.S. and Iran continued to affect oil prices.
The recent run-up in oil futures over the past month has contributed to higher Treasury yields, as investors become increasingly cautious about the potential inflationary impact of sustained energy price increases.
U.S. President Donald Trump stated on Monday via his Truth Social platform that, following an American victory in the war with Iran, oil prices could see a sharp decline. He projected that gasoline prices may fall to $3 per gallon, or possibly lower, and reiterated his administration’s intention to prevent Iran from obtaining a nuclear weapon.
Looking ahead, the U.S. Federal Reserve is slated to convene a monetary policy meeting next week. CME Group’s FedWatch tool shows a 60% probability that policymakers will opt for a quarter-percentage-point increase in interest rates after the gathering.
Meanwhile, the expectations remain sensitive to upcoming U.S. inflation data, with wholesale price data scheduled for Thursday and consumer price figures expected Friday.
In addition to oil-driven risk, traders are watching developments in North American trade, as fresh strains emerge between the U.S. and Canada. On Tuesday, Canadian retaliatory tariffs targeting approximately $20 billion worth of U.S. goods are set to take effect.
Trump, in response, announced Monday that Canadian aircraft manufacturer Bombardier would be barred from the U.S. market unless it shifts some production stateside.
Japan’s NIKKEI increased by 0.22% to 66,543.44. South Korea’s KOSPI jumped by 1.90% to 7,127.99, while Australia’s ASX 200 declined by 0.38% to 8,976.60.
As for stocks in China, Shenzhen’s SZI dropped by 0.41% to 13,718.47. Hong Kong’s HSI contracted by 0.37% to 25,319.85, while Shanghai’s SSEC rose by 0.17% to 3,939.43.
The U.S. stock markets were closed on Monday for a holiday.
As for commodities, oil prices trended higher on Monday following warnings from Iran of potential retaliation targeting key energy facilities throughout the Middle East after the U.S. strikes on Iranian assets. Brent crude futures concluded the session higher by $1.03, a gain of 1.1%, closing at $97.31 per barrel. U.S. West Texas Intermediate crude advanced by $1.17, or 1.3%, ending at $92.65 per barrel, as of 1:45 PM EDT.
Meanwhile, gold futures climbed by 0.03% to $4,477.80 per Troy ounce.
