On Wednesday (13 May, 9:51 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific displayed a varied performance as investors evaluated stronger-than-anticipated U.S. inflation data for April, with continuing concerns about higher energy costs and geopolitical instability in the Middle East.
April’s consumer price index in the U.S. climbed 3.8% year-over-year, marking the fastest pace since 2023. Both gasoline and grocery prices contributed to the increase, while wage growth failed to keep up. Core inflation, which strips out volatile food and energy items, advanced by 2.8% from the year before.
Market strategists cautioned that persistent U.S. inflation may prompt the Federal Reserve to adopt a more restrictive policy. Kazunori Tatebe, chief strategist at Daiwa Asset Management, noted that higher U.S. yields resulting from sustained inflation could weigh on equities, particularly on sectors such as artificial intelligence and semiconductors that have driven recent market gains.
In geopolitical developments, U.S. Defense Secretary Pete Hegseth indicated that President Trump could authorize renewed military actions against Iran without seeking new approval from Congress, following the expiration of the 60-day period mandated by the federal war powers law.
Investors are monitoring the planned meeting between Trump and China’s President Xi Jinping this week, with trade negotiations expected to be a central topic during the upcoming talks.
Japan’s NIKKEI rose by 0.30% to 62,930.20. South Korea’s KOSPI grew by 1.28% to 7,740.86, while Australia’s ASX 200 shrank by 0.24% to 8,650.20.
As for stocks in China, Shanghai’s SSEC climbed by 0.03% to 4,215.79. Shenzhen’s SZI increased by 0.30% to 15,872.98, while Hong Kong’s HSI fell by 0.30% to 26,268.93.
The U.S. stock markets edged down on Tuesday as NASDAQ decline by 0.71% to 26,088.20. S&P 500 lost 0.16% to 7,400.96, while the Dow Jones Industrial Average (DJIA) gained 0.11% to 49,760.56. VIX dropped by 2.12% to 17.99.
As for commodities, oil prices settled higher on Tuesday, with investors responding to persistent disagreements between the U.S. and Iran regarding a Middle East ceasefire plan. Market participants remain concerned that ongoing tensions could extend the risk of disruptions to oil supplies. Brent crude finished the session $3.56 higher, up 3.42%, with a closing price of $107.77 per barrel. U.S. West Texas Intermediate crude advanced $4.11, up 4.19%, to close at $102.18 a barrel.
This morning, Brent futures dipped 73 cents or 0.68% to $107.04 per barrel, and the WTI futures diminished 63 cents or 0.62% to $101.55 per barrel.
Meanwhile, gold futures expanded by 0.39% to $4,705.20 per Troy ounce.
