On Monday (20 July, 9:11 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited an upward trend, even as ongoing Middle East unrest spurred investor caution. Escalating tensions between the United States and Iran over the weekend contributed to market volatility, while Japanese bourses remained shut due to a public holiday.
The U.S. military continued its efforts to degrade Iran’s capabilities on Sunday, conducting a ninth consecutive night of strikes aimed at curbing threats to commercial vessels transiting the Strait of Hormuz. These military moves have further strained the already delicate stalemate between Washington and Tehran.
Brent crude prices breached the $90 per barrel threshold, shifting attention back toward inflation risks, especially after recent U.S. economic indicators had supported the view that additional rate hikes from the Federal Reserve might not be immediately necessary.
Federal Reserve Chair Kevin Warsh reiterated the commitment to curbing inflation, prompting market participants to scrutinize upcoming U.S. data for indications of ongoing economic strength. Investors are looking for further confirmation that could solidify expectations of another interest rate increase as soon as September or October.
Market focus also remains on upcoming corporate earnings. Several major U.S. technology companies are scheduled to report results this week, including Alphabet and Tesla on Wednesday, followed by Intel on Thursday.
South Korea’s KOSPI slumped by 3.58% to 6,576.14, and Australia’s ASX 200 climbed by 0.06% to 8,802.40.
As for stocks in China, Shanghai’s SSEC jumped by 1.40% to 3,816.88. Shenzhen’s SZI surged 0.71% to 13,804.50, and Hong Kong’s HSI soared by 2.07% to 25,069.56.
The U.S. stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) lost 0.77% to 52,146.42. NASDAQ plummeted by 1.40% to 25,520.24, and S&P 500 declined by 1.01% to 7,457.69. VIX advanced by 12.19% to 18.77.
As for commodities, oil prices rose on Monday following escalations between the United States and Iran. Heightened military actions from both countries have led to disruptions in energy transport through the Strait of Hormuz, intensifying concerns over supply constraints among investors. Brent futures expanded $2.14, or 2.43%, to $90.24 per barrel, and the WTI futures gained $1.83, or 2.22%, to $84.32 per barrel.
Meanwhile, gold futures fell by 0.27% to $4,007.90 per Troy ounce.
