On Thursday (11 June, 9:54 AM, GMT+7, Bangkok time), major indices in the Asia Pacific retreated as renewed geopolitical strains in the Middle East and rising oil prices dampened investor appetite for risk assets. The U.S. military expanded operations against Iranian targets late Wednesday, heightening concerns that hostilities in the region could escalate further.
According to U.S. Central Command, American forces carried out new strikes on several locations in Iran following orders from President Donald Trump. This action, labeled as self-defense, was a response to reported attacks by Iranian forces. Following that, Iran’s state media posted on X social media regarding the country’s military actions targeting U.S. naval vessels in the Strait of Hormuz.
Market participants grew increasingly cautious amid apprehensions that further conflict could disrupt oil supplies, elevate energy costs, and intensify inflationary pressures. Although the release of a softer U.S. inflation report on Wednesday briefly buoyed sentiment, fears over ongoing geopolitical risks, along with a decline in semiconductor stocks, overshadowed positive signals.
Attention now shifts to upcoming U.S. economic data, with May’s producer price index set for release on Thursday stateside. Economists surveyed by Dow Jones anticipate a 0.7% monthly rise in wholesale inflation, with core prices forecast to increase by 0.5%—a slower pace than in April. Market focus will also be on fresh initial jobless claims data from early June, as traders look for further clues on the strength of the U.S. labor market.
Japan’s NIKKEI dropped by 1.46% to 63,239.52. South Korea’s KOSPI slumped by 2.22% to 7,559.56, and Australia’s ASX 200 fell by 0.67% to 8,595.40.
As for stocks in China, Shanghai’s SSEC contracted by 0.60% to 3,969.24. Shenzhen’s SZI declined by 0.98% to 14,807.58, and Hong Kong’s HSI plummeted by 1.48% to 24,046.83.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) lost 1.87% to 49,918.78. NASDAQ tumbled by 1.98% to 25,169.50, and S&P 500 diminished by 1.62% to 7,266.99. VIX surged 11.83% to 22.22.
As for commodities, oil prices settled higher on Wednesday following statements from President Donald Trump indicating that the United States would take significant military action against Iran if diplomatic efforts fail to produce a peace agreement. Brent crude futures ended the session at $93.10 per barrel, representing a gain of $1.65 or 1.8%. U.S. crude futures also climbed, closing at $90.03 per barrel, up $1.83 or 2%.
Both benchmarks extended gains this morning after the U.S. and Iran reported renewed strikes, escalating tensions in the Middle East. Brent futures increased $1.50, or 1.61%, to $94.60 per barrel, and the WTI futures gained $1.75, or 1.94%, to $91.78 per barrel.
Meanwhile, gold futures decreased by 1.28% to $4,080.50 per Troy ounce.
