On Thursday morning (22 May, 9:40 AM, GMT+7, Bangkok time), indices in Asia Pacific exhibited a downward trend, mirroring the drop in Wall Street amid concerns over the impact of a new U.S. budget plan on the already soaring national debt.
Investor apprehension over the mounting national debt escalated as the U.S. Treasury Department witnessed tepid interest in its $16 billion offering of 20-year bonds on Wednesday. Concerns grew as Congress grapples with a tax and spending legislation projected to exacerbate the country’s fiscal challenges.
In addition, market participants are also poised for insights into New Zealand’s 2025 budget release.
Japan’s NIKKEI declined by 0.85% to 36,981.95. South Korea’s KOSPI slumped by 1.26% to 2,592.58, and Australia’s ASX 200 fell by 0.51% to 8,344.1.
As for stocks in China, Shanghai’s SSEC slid by 0.01% to 3,387.37. Hong Kong’s HSI decreased by 0.53% to 23,701.05, and Shenzhen’s SZI shrank by 0.3% to 10,263.63.
Meanwhile, the US stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) contracted by 1.91% to 41,860.44. NASDAQ plummeted by 1.41% to 18,872.64, and S&P 500 was down by 1.61% to 5,844.61. VIX soared by 15.37% to 20.87.
As for commodities, oil prices settled lower on Wednesday following statements by Oman’s foreign minister regarding upcoming nuclear discussions between Iran and the U.S.
The price initially climbed in response to a CNN report indicating U.S. intelligence pointing to potential Israeli military action against Iranian nuclear sites. However, it remained uncertain if Israeli authorities had reached a definitive conclusion regarding the potential action.
Brent futures lost 47 cents or 0.7% to $64.91 a barrel, and the West Texas Intermediate (WTI) dropped 46 cents or 0.7% to $61.57 per barrel.
This morning, Brent futures slid 13 cents or 0.2% to $64.78 a barrel, and the WTI futures dipped 13 cents or 0.21% to $61.44 per barrel.
Meanwhile, gold futures surged 0.78% to $3,339.4 per Troy ounce.
