On Thursday (18 June, 9:20 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited an upward trend, following the conclusion of the U.S. Federal Reserve meeting.
The Fed opted to leave interest rates unchanged on Wednesday, marking the first policy decision under the leadership of Chairman Kevin Warsh. While the benchmark rate remains in a range of 3.5% to 3.75%, internal projections suggest a growing inclination among officials to resume tightening later this year to combat persistent price pressures.
Although the Federal Open Market Committee (FOMC) was unanimous in its decision to pause, the latest “dot plot” revealed a notable divide among policymakers.
On the geopolitics front, the U.S. and Iran have entered into a memorandum of understanding that includes reopening the Strait of Hormuz and working toward a broader agreement on a range of unresolved issues. The document took effect on Wednesday following digital signatures from both nations.
President Donald Trump described the development as a significant achievement for the United States during an extended media briefing at the G7 summit, hosted in France. Officials from both governments later verified that the memorandum had been signed electronically and was officially active.
Japan’s NIKKEI gained 1.74% to 71,119.72. South Korea’s KOSPI rose by 0.38% to 8,897.62, while Australia’s ASX 200 fell by 0.44% to 8,927.00.
As for stocks in China, Shanghai’s SSEC climbed by 0.13% to 4,113.49. Shenzhen’s SZI added 1.11% to 16,057.57, while Hong Kong’s HSI dropped by 1.34% to 23,987.48.
The U.S. stock markets were down on Wednesday as the Dow Jones Industrial Average (DJIA) lost 0.98% to 51,492.55. NASDAQ contracted by 1.35% to 26,021.65, and S&P 500 slumped by 1.21% to 7,420.10. VIX soared by 12.37% to 18.44.
As for commodities, oil prices settled higher on Wednesday following remarks from Donald Trump, who indicated the latest ceasefire agreement with Iran remains tentative, leaving open the possibility of renewed conflict if conditions are not met. Brent crude settled at $79.55 per barrel, representing an increase of 59 cents or 0.75%. U.S. West Texas Intermediate finished at $76.79, up 74 cents or 0.97%.
However, both benchmarks experienced declines early Thursday after the U.S. and Iran formalized the memorandum of understanding, easing trader concerns on supply disruptions. Brent futures decreased $1.25, or 1.57%, to $78.30 per barrel, and the WTI futures slid $1.34, or 1.75%, to $75.45 per barrel.
Meanwhile, gold futures shrank by 0.82% to $4,345.40 per Troy ounce.
