On Tuesday (19 May, 9:20 AM, GMT+7, Bangkok time), major indices in the Asia Pacific traded mixed after President Donald Trump announced a delay to planned U.S. military action against Iran. The market response followed Trump’s statement that military leaders received instructions to halt an imminent strike, after appeals from leaders in Qatar, Saudi Arabia, and the United Arab Emirates.
Trump indicated negotiations are in progress, describing an anticipated agreement as favorable to both the United States and Middle Eastern countries, with a priority on preventing Iran from developing nuclear weapons. However, he emphasized that the U.S. military remains on standby for a full-scale offensive if diplomatic efforts fail.
Despite the pause in immediate hostilities, key shipping routes remain compromised. Tehran continues to block the Strait of Hormuz, while the U.S. maintains a blockade of Iranian ports.
Wall Street strategist Louis Navellier underscored ongoing volatility until the situation is resolved, warning that prolonged disruption to shipments through the Strait of Hormuz could push energy prices higher, ultimately driving inflation and interest rate increases if the blockade persists.
Elsewhere in Asia, economic data from Japan showed steady performance, with first-quarter gross domestic product expanding by an annualized 2.1%. This surpassed market expectations and the previous quarter’s growth figures, although the statistics do not fully reflect economic fallout from the Middle East conflict.
Notably, investors are also watching a high-profile meeting today between Japan’s Prime Minister Sanae Takaichi and South Korea’s President Lee Jae Myung.
Japan’s NIKKEI declined by 0.34% to 60,612.09. South Korea’s KOSPI plummeted by 4.34% to 7,190.19, while Australia’s ASX 200 surged by 0.82% to 8,575.20.
As for stocks in China, Shanghai’s SSEC fell by 0.33% to 4,118.07. Shenzhen’s SZI dropped by 1.59% to 15,283.81, while Hong Kong’s HSI rose by 0.30% to 25,751.72.
The U.S. stock markets edged down on Monday as NASDAQ lost 0.51% to 26,090.73. S&P 500 slid by 0.07% to 7,403.05, while the Dow Jones Industrial Average (DJIA) grew by 0.32% to 49,686.12. VIX slumped by 3.31% to 17.82.
As for commodities, oil prices settled higher on Monday, with market participants focusing on the possibility of supply interruptions amid the Middle East conflict. This increase came despite reports indicating that the U.S. had agreed to waive some sanctions on Iranian oil as part of negotiation efforts. Brent crude futures for July finished $2.84 higher, closing at $112.10 per barrel, up 2.6%. U.S. West Texas Intermediate crude for June delivery gained $3.24, settling at $108.66 per barrel, a rise of 3.1%.
This morning, Brent futures decreased $2.45 or 2.19% to $109.65 per barrel, and the WTI futures contracted $1.26 or 1.16% to $107.40 per barrel.
Meanwhile, gold futures climbed by 0.02% to $4,558.70 per Troy ounce.
