On Thursday (15 October, 9:14 AM, GMT+7, Bangkok time), most major indices in the Asia-Pacific echoed the downturn seen in U.S. trading as stronger-than-anticipated inflation data from Washington heightened expectations of further interest rate increases by the Federal Reserve. Shares of semiconductor companies in particular experienced notable declines as global investor sentiment worsened.
Compounding these worries, recent attacks on merchant ships passing through the Strait of Hormuz have contributed to uncertainty regarding energy supplies and further complicated the outlook amid ongoing conflict in the Middle East.
Fed Chair Kevin Warsh emphasized that he would not attempt to guide market perceptions with personal near-term policy views. Nonetheless, market participants are expected to closely monitor his scheduled discussion in Bangkok with IMF Managing Director Kristalina Georgieva for any comments on inflation and policy direction.
Analysts noted that inflationary pressure appears persistent, with some suggesting that external shocks, including geopolitical conflicts, are exacerbating price dynamics. The Fed’s approach to inflation, particularly after previously characterizing pandemic-era price increases as transitory, remains under scrutiny.
Following these developments, investors are awaiting additional economic indicators due later on Thursday, including September’s producer price data, along with reports on retail sales and initial jobless claims.
Japan’s NIKKEI slumped by 4.61% to 64,624.00. South Korea’s KOSPI plunged by 7.69% to 5,546.55, while Australia’s ASX 200 climbed by 0.08% to 8,735.30.
Shanghai’s SSEC declined by 1.63% to 3,705.91. Shenzhen’s SZI plummeted by 2.36% to 11,824.32, and Hong Kong’s HSI fell by 1.06% to 24,056.54.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) dipped by 0.09% to 51,621.48. NASDAQ contracted by 1.88% to 26,692.86, and S&P 500 dropped by 1.11% to 7,718.94. VIX jumped by 10.48% to 16.87.
As for commodities, oil prices settled higher on Wednesday following an assault on Saudi Aramco’s headquarters carried out by Houthi forces, alongside statements from Iran regarding the implementation of new measures intended to sustain elevated oil prices. Brent crude concluded the session up 37 cents, or 0.35%, reaching $106.06 per barrel. U.S. West Texas Intermediate futures recorded a gain of 95 cents, or 1.01%, closing at $95.09.
This morning, Brent futures decreased $1.74, or 1.64%, to $104.32 per barrel, and WTI futures lost $1.19, or 1.25%, to $93.90 per barrel.
Meanwhile, gold futures advanced by 1.29% to $4,160.70 per Troy ounce.
