On Thursday (2 April, 9:35 AM, GMT+7, Bangkok time), major indices in the Asia Pacific saw a slump as traders weighed President Donald Trump’s remarks on the conflict with Iran.
Trump stated that U.S. goals regarding Iran have nearly been accomplished and that the U.S. holds a position of strength in the standoff. Meanwhile, investor sentiment was pressured as he later warned of the plans to intensify strikes against the Middle Eastern nation in the next two to three weeks.
In comments posted on Truth Social, Trump indicated that Washington would only consider a ceasefire proposal if the Strait of Hormuz were fully operational and accessible.
The protracted conflict has weighed on global markets, pushing multiple key indexes into correction territory over the last five weeks. In the lead-up to Trump’s address, market sentiment had strengthened on speculation that a reduction in U.S. military engagement could help stabilize the geopolitical landscape.
Meanwhile, the Iranian president reached out directly to the U.S. via an open letter, stating that Iran bears no enmity towards the U.S. and has acted in self-defense. He cautioned that further clashes would bring heightened costs and emphasized the impact of conflict on Iran’s infrastructure and population.
Japan’s NIKKEI dropped by 1.67% to 52,841.20. South Korea’s KOSPI slumped by 3.74% to 5,274.04, and Australia’s ASX 200 decreased by 0.71% to 8,610.40.
As for stocks in China, Shanghai’s SSEC shrank by 0.38% to 3,933.60. Shenzhen’s SZI declined by 0.80% to 13,596.46, and Hong Kong’s HSI fell by 0.95% to 25,053.50.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) rose by 0.48% to 46,565.74. NASDAQ gained 1.16% to 21,840.94, and S&P 500 surged by 0.72% to 6,575.32. VIX diminished by 2.81% to 24.54.
As for commodities, oil prices settled lower on Wednesday, following comments from President Donald Trump regarding the U.S. approach to its conflict with Iran, with signals to retreat from the war. Brent crude for June delivery dropped $2.81, or 2.7%, to close at $101.16 per barrel. West Texas Intermediate crude for May settled at $100.12 a barrel, down $1.26, or 1.2%.
Nevertheless, the prices reversed course on Thursday after Trump indicated the U.S. would deliver extremely hard military actions against Iran in the coming weeks. This morning, Brent futures increased $5.06, or 5.00%, to $106.22 per barrel, and the WTI contract advanced $4.16, or 4.16%, to $104.28 per barrel.
Meanwhile, gold futures dropped by 1.79% to $4,697.80 per Troy ounce.
