On Thursday morning (8 January, 9:15 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited a downward trend following a decline in U.S. stocks overnight, with investors weighing fresh geopolitical risks as well as the latest statements from President Donald Trump.
Defense-related stocks in the United States retreated after President Trump announced that defense firms would be barred from issuing dividends or initiating stock buybacks until concerns over executive pay packages and production challenges were resolved.
He also disclosed that Venezuela’s interim government plans to deliver up to 50 million barrels of crude oil to the U.S., raising the prospect of a sudden boost in global supply and sparking anxiety among investors, thereby putting pressure on prices.
South Korea’s KOSPI soared by 1.41% to 4,615.41. Australia’s ASX 200 rose by 0.16% to 8,709.40, while Japan’s NIKKEI dropped by 0.51% to 51,695.95.
As for stocks in China, Shanghai’s SSEC slid by 0.02% to 4,085.06. Shenzhen’s SZI dipped by 0.14% to 14,011.45, and Hong Kong’s HSI slumped by 0.96% to 26,204.46.
The U.S. stock markets were mixed on Wednesday as the Dow Jones Industrial Average (DJIA) fell by 0.94% to 48,996.08. S&P 500 lost 0.34% to 6,920.93, while NASDAQ increased by 0.16% to 23,584.27. VIX added 4.27% to 15.38.
As for commodities, oil prices settled lower on Wednesday as markets reacted to Trump’s agreement to import as much as $2 billion in Venezuelan crude, raising the possibility of increased supply for the United States. Brent crude finished the session down 74 cents, or 1.2%, closing at $59.96 per barrel, while U.S. West Texas Intermediate fell by $1.14, or 2%, to settle at $55.99 a barrel.
This morning, Brent crude futures gained 37 cents, or 0.62%, to $60.33 per barrel, and the WTI surged by 37 cents, or 0.66%, to $56.36 per barrel.
Meanwhile, gold futures declined by 0.26% to $4,450.70 per Troy ounce.
