On Wednesday (20 May, 9:07 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited losses as traders responded to persistent concerns over rising inflation and increased bond yields, alongside geopolitical risks.
U.S. government bond yields continued to reflect investor jitters, with the 30-year Treasury approaching heights not seen since mid-2007, briefly touching 5.197% before easing back to 5.174%. The uptick was driven by selling pressure as inflation worries resurfaced, weighing on bond prices and reinforcing caution across global asset classes.
Asian equities marked their fourth consecutive decline as participants reconsidered valuations in the wake of recent market gains. The retreat in shares followed several weeks during which investors largely dismissed geopolitical tensions in the Middle East, encouraged instead by expectations that ongoing investment in artificial intelligence would buoy earnings.
However, with this optimism fading, market focus has shifted towards corporate results, particularly the upcoming earnings release from Nvidia. There is increasing uncertainty among investors about whether the surge in AI-related stocks can be sustained after their strong performance so far this year.
Japan’s NIKKEI slumped by 1.44% to 59,675.84. South Korea’s KOSPI fell by 2.03% to 7,124.21, and Australia’s ASX 200 decreased by 0.97% to 8,521.20.
As for stocks in China, Shanghai’s SSEC contracted by 0.35% to 4,154.99. Shenzhen’s SZI slid by 0.23% to 15,533.61, and Hong Kong’s HSI dipped by 0.47% to 25,677.10.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) shrank by 0.65% to 49,363.88. NASDAQ diminished by 0.84% to 25,870.71, and S&P 500 lost 0.67% to 7,353.61. VIX surged by 1.35% to 18.06.
As for commodities, oil prices settled lower on Tuesday after Vice President JD Vance said talks with Iran were progressing and both sides wanted to avoid renewed military conflict. President Trump had postponed a planned military strike, but warned that the U.S. was prepared to act if no deal is reached. Brent futures for July declined 82 cents, or 0.73%, to settle at $111.28 a barrel. The U.S. West Texas Intermediate crude contract for June dropped 89 cents, or 0.82%, to $107.77.
This morning, Brent futures were 83 cents or 0.75% lower to $110.45 per barrel, and the WTI futures softened 75 cents or 0.72% to $103.40 per barrel.
Meanwhile, gold futures decreased by 0.60% to $4,484.10 per Troy ounce.
