On Tuesday (21 July, 9:20 AM, GMT+7, Bangkok time), major indices in the Asia Pacific delivered a mixed performance, reflecting investor concern over heightened instability in the Middle East, the introduction of new U.S. trade barriers against Canadian goods, and an uptick in oil prices.
Tension escalated following remarks from U.S. President Donald Trump, who pledged there would be repercussions for Iran after three U.S. service personnel were killed. At the same time, Yemen’s Houthi group declared a blockade on maritime shipments from Saudi Arabia.
The announcement reintroduced risks regarding global oil supply, as the Red Sea shipping corridor is vital for Saudi crude exports that bypass the Strait of Hormuz. In response, Saudi authorities affirmed the commitment to safeguarding their vessels amid ongoing threats from the Houthis.
On the trade front, the Trump administration imposed a new 50% tariff targeting several Canadian products, stating that these steps were necessary to counter what the U.S. regards as discriminatory actions by the Canadian government in multiple sectors. The measures specifically affect imports such as vehicles, dairy, and alcoholic beverages.
Upward pressure on crude prices and deteriorating geopolitical conditions have heightened investor caution, prompting some portfolio rotation away from technology shares following their strong gains earlier in the year.
Investor attention is now turning to forthcoming earnings announcements from major U.S. technology firms, with results from Tesla and Alphabet due this week, and financial statements from Microsoft, Meta Platforms, Apple, and Amazon scheduled for the following week.
Japan’s NIKKEI surged 1.85% to 65,329.32. South Korea’s KOSPI rose by 2.38% to 6,671.68, while Australia’s ASX 200 declined by 0.31% to 8,763.70.
As for stocks in China, Shanghai’s SSEC fell by 1.16% to 3,752.40. Shenzhen’s SZI contracted by 1.34% to 13,428.37, while Hong Kong’s HSI climbed by 0.10% to 25,169.34.
The U.S. stock markets edged down on Monday as the Dow Jones Industrial Average (DJIA) decreased by 0.59% to 51,839.26. NASDAQ dipped by 0.05% to 25,508.07, and S&P 500 slid by 0.19% to 7,443.28. VIX lost 0.64% to 18.65.
As for commodities, oil prices settled higher on Monday as investors evaluated the possibility of resumed talks between the United States and Iran, with concerns about Yemen’s Houthis enacting a maritime blockade directed at Saudi Arabia. Brent crude futures closed up $1.12, or approximately 1.3%, finishing at $89.22 per barrel. U.S. West Texas Intermediate crude ended the day 74 cents higher, rising by 0.9% to settle at $83.23 a barrel.
This morning, Brent futures shrank 61 cents, or 0.68%, to $88.61 per barrel, and the WTI futures were down 25 cents, or 0.30%, to $82.98 per barrel.
Meanwhile, gold futures advanced by 0.36% to $4,030.30 per Troy ounce.
