On Thursday (16 July, 9:48 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific declined, with traders responding to monetary moves and global sector trends.
Sentiment was partly impacted by a retreat in semiconductor stocks. Concerns about the sustainability of artificial intelligence-related gains weighed on the sector after reports surfaced that ASML, a key supplier to chipmakers, intends to increase its prices. This followed the company’s disclosure of its better-than-expected sales in Q2 and improved guidance for 2026. Investors now closely monitor upcoming earnings from TSMC for insight into the outlook for the industry.
In monetary policy, the Bank of Korea opted to raise its benchmark rate by 25 basis points to 2.75%, marking its first such move since January 2023. The decision responded to inflationary pressures, as headline inflation in June reached 2.3%, a level not seen since 2023. The central bank indicated that recent performance bonuses in the IT industry could fuel broader wage increases, adding to inflation risks.
Geopolitical tensions also continued to shape market sentiment. U.S. President Donald Trump stated that Iran had signaled an openness to negotiations, although U.S. military actions against Iranian positions persisted. Despite these signals, defense analysts noted limited signs that the situation between the U.S. and Iran was close to a diplomatic breakthrough.
Japan’s NIKKEI slumped by 2.84% to 66,796.79. South Korea’s KOSPI plummeted by 6.46% to 6,814.11, and Australia’s ASX 200 dropped by 0.24% to 8,819.60.
As for stocks in China, Shanghai’s SSEC fell by 0.48% to 3,936.68. Shenzhen’s SZI contracted by 0.33% to 14,731.07, while Hong Kong’s HSI surged 1.73% to 25,107.98.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) rose by 0.29% to 52,658.64. NASDAQ increased by 0.62% to 26,269.22, and S&P 500 gained 0.38% to 7,572.40. VIX diminished by 5.03% to 15.67.
As for commodities, oil prices settled higher on Wednesday, supported by inventory data, as traders largely overlooked recent U.S. strikes on Iranian military sites. The U.S. Energy Information Administration reported a 1.7-million-barrel decline in crude stocks last week, which fell short of the projected 2.6-million-barrel decrease. Brent settled at $84.95 a barrel, up 22 cents or 0.26%, while West Texas Intermediate closed at $79.60 a barrel, rising 26 cents or 0.33%.
This morning, Brent futures advanced 31 cents, or 0.36%, to $85.26 per barrel, and the WTI futures expanded 48 cents, or 0.60%, to $80.08 per barrel.
Meanwhile, gold futures decreased by 0.42% to $4,034.70 per Troy ounce.
