On Friday morning (17 October, 9:17 AM, GMT+7, Bangkok time), most indices in Asia Pacific exhibited a downward trend, mirroring losses on Wall Street. This came amid investor concerns about the banking sector and global political developments.
A series of bankruptcies in the auto sector this year is fueling concerns about lax lending standards, particularly within the private credit market. Zions Bancorporation recently reported a significant loan loss tied to a few struggling borrowers and has called for an independent review.
Western Alliance also revealed a borrower fraud issue, unsettling investors even as the firm reaffirmed its 2025 outlook. According to JPMorgan analyst Anthony Elian, these incidents may be contained, but investor nerves remain fragile, with many opting to “sell first and ask questions later” amid rising credit risk.
U.S. President Donald Trump and Russian President Vladimir Putin have agreed to hold a summit focused on the war in Ukraine, an unexpected development as Moscow faces the potential of increased U.S. military aid to Kyiv. Trump announced the possibility of meeting Putin in Budapest within the next two weeks, while the Kremlin confirmed its intention to participate. Meanwhile, both nations stopped short of setting a firm date for the talks.
China on Thursday rejected U.S. accusations of stoking panic over its rare earth export controls and criticized Treasury Secretary Scott Bessent for “grossly distorted” comments about a top Chinese negotiator. Beijing dismissed U.S. calls to lift the export curbs, as the official Communist Party newspaper issued a detailed rebuttal. While investors are relieved that major tariff escalations have been avoided, renewed tensions threaten to complicate the upcoming Trump-Xi summit in South Korea.
Japan’s NIKKEI fell by 0.84% to 47,870.15. Australia’s ASX 200 dropped by 0.78% to 8,997.8, while South Korea’s KOSPI surged by 0.96% to 3,784.48.
As for stocks in China, Shanghai’s SSEC declined by 0.92% to 3,880.30. Hong Kong’s HSI slumped by 1.31% to 25,549.04, and Shenzhen’s SZI plummeted by 2.01% to 12,822.99.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) lost 0.65% to 45,952.24. NASDAQ contracted by 0.47% to 22,562.53, and S&P 500 shrank by 0.63% to 6,629.07. VIX jumped by 22.63% to 25.31.
As for commodities, oil prices settled higher on Thursday, following confirmation from U.S. President Donald Trump of an upcoming meeting with Russian President Vladimir Putin in Hungary aimed at pursuing an end to the conflict in Ukraine. The announcement injected fresh uncertainty into the outlook for global energy supply. Brent crude dropped 85 cents, or 1.37%, to settle at $61.06 a barrel. U.S. West Texas Intermediate futures lost 81 cents, or 1.39%, closing at $57.46 per barrel.
This morning, Brent futures decreased 44 cents, or 0.72%, to $60.62 a barrel, and the WTI slid 44 cents, or 0.77%, to $57.02 per barrel.
Meanwhile, gold futures added by 0.72% to $4,335.5 per Troy ounce.
