On Tuesday (20 October, 9:31 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific exhibited a downward trend, diverging from gains seen in U.S. markets where technology shares rallied. Market participants expressed caution due to ongoing doubts about the long-term viability of investments in artificial intelligence.
This week, investor attention is focused on the upcoming financial results from major technology firms such as Meta Platforms and Tesla. These reports are expected to provide insight into whether technology stocks can sustain their recent upward momentum.
According to analysts, further pressure is coming from persistent high bond yields, which are lifting borrowing costs, and rising oil prices, which continue to stoke inflation concerns.
On another front, China’s central bank announced that its overnight reverse repurchase rate would replace the seven-day rate as the benchmark for policy operations. This adjustment is intended to further align China’s policy framework with international standards and potentially lower financing costs.
Japan’s NIKKEI declined by 0.75% to 64,432.62. South Korea’s KOSPI slumped by 3.13% to 5,587.60, and Australia’s ASX 200 fell by 0.67% to 8,786.20.
Shanghai’s SSEC slid by 0.15% to 3,725.17. Shenzhen’s SZI decreased by 0.21% to 11,792.36, and Hong Kong’s HSI contracted by 1.06% to 23,929.94.
The U.S. stock markets edged up on Monday as NASDAQ surged 1.11% to 26,430.88. S&P 500 advanced by 0.41% to 7,690.73, while the Dow Jones Industrial Average (DJIA) dipped by 0.07% to 51,966.03. VIX plummeted by 7.75% to 18.44.
As for commodities, oil prices were mixed on Monday following continued unease in the Middle East, including fresh strikes on Saudi Arabian energy, airport, and defense infrastructure by the Houthis. Brent crude futures finished the session 0.3% down, or 31 cents, at $109.55 per barrel. U.S. West Texas Intermediate climbed 2.2%, or $2.25, closing at $103.66 per barrel.
This morning, Brent futures lost 4 cents, or 0.04%, to $109.51 per barrel, and WTI futures gained 11 cents, or 0.11%, to $103.77 per barrel.
Meanwhile, gold futures dropped by 0.09% to $4,156.50 per Troy ounce.
