On Tuesday (12 May, 9:12 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific moved lower amid renewed concerns over the stability of the U.S.-Iran ceasefire, following remarks from President Donald Trump suggesting the agreement may not hold.
Trump on Monday indicated he is skeptical about the prospects for maintaining the truce, after Iran issued a response to the latest U.S. proposal he found unsatisfactory. He compared the status of the ceasefire to be effectively “on life support,” implying only a slim chance for its survival.
While Trump did not clarify whether Washington would resume military actions should Iran reject his terms, he mentioned in a separate interview with Fox News the consideration of renewing U.S. naval escorts for shipping in the Strait of Hormuz.
Despite the geopolitical unease, strong U.S. corporate earnings have prompted analysts on Wall Street to revise upward their expectations for the S&P 500’s year-end performance. Many investors remain confident that robust profit growth, particularly from increased investment in artificial intelligence sectors, will help sustain the equity rally—even in the face of persistent Middle East uncertainties.
South Korea’s KOSPI slumped by 2.68% to 7,612.62. Australia’s ASX 200 dropped by 0.75% to 8,636.90, while Japan’s NIKKEI climbed by 0.09% to 62,471.22.
As for stocks in China, Shanghai’s SSEC slid by 0.10% to 4,220.84. Shenzhen’s SZI dipped by 0.22% to 15,864.98, while Hong Kong’s HSI surged by 0.64% to 26,574.95.
The U.S. stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) rose by 0.19% to 49,704.47. NASDAQ grew by 0.10% to 26,274.12, and S&P 500 increased by 0.19% to 7,412.84. VIX soared by 6.92% to 18.38.
As for commodities, oil prices settled higher on Monday following remarks by Donald Trump regarding Iran’s peace proposal. The persistent conflict has continued to limit shipping activity through the Strait of Hormuz, keeping the outlook for the region uncertain. Brent crude futures increased by $2.92, finishing the session at $104.21 per barrel, a gain of 2.88%. U.S. West Texas Intermediate crude also advanced, climbing $2.65, or 2.78%, to settle at $98.07 per barrel.
This morning, Brent futures advanced 93 cents or 0.89% to $105.14 per barrel, and the WTI futures gained 91 cents or 0.93% to $98.98 per barrel.
Meanwhile, gold futures expanded by 0.22% to $4,738.90 per Troy ounce.
