On Wednesday (5 August, 9:50 AM, GMT+7, Bangkok time), major indices in the Asia Pacific advanced broadly, with strong performances recorded in both Japan’s Nikkei and South Korea’s Kospi. Gains came on the heels of a positive session for U.S. stocks, where favorable corporate earnings and remarks from Treasury Secretary Scott Bessent helped drive sentiment. He indicated that the U.S. and Iran may be nearing an agreement to resume shipments through the Strait of Hormuz.
Market participants are focusing on whether a reopening of the Strait will contribute to a further easing in oil prices. Such a development could relieve inflationary pressures and potentially temper expectations for additional interest rate increases by the Federal Reserve. Additionally, investors are gauging whether technology stocks, particularly those linked to AI, can recapture recent momentum.
In the Middle East, there remain questions as to whether any deal would bring an end to hostilities or address President Trump’s ongoing concerns regarding Iran’s nuclear program. Qatari officials confirmed that a draft agreement has been prepared, while both U.S. and Iranian authorities noted optimism about progress toward reopening the strategic waterway.
Japan’s NIKKEI jumped by 2.98% to 65,861.00. South Korea’s KOSPI soared by 3.65% to 6,591.04, and Australia’s ASX 200 grew by 0.35% to 9,177.80.
As for stocks in China, Shanghai’s SSEC rose by 0.81% to 3,853.27. Shenzhen’s SZI added 0.33% to 13,932.05, and Hong Kong’s HSI climbed by 0.18% to 25,899.91.
The U.S. stock markets edged up on Tuesday as the Dow Jones Industrial Average (DJIA) gained 1.71% to 54,085.88. NASDAQ surged 2.59% to 26,584.99, and S&P 500 was up 1.79% to 7,736.52. VIX increased by 4.04% to 16.50.
As for commodities, oil prices settled lower on Tuesday following statements from both Qatari and U.S. officials that suggested a possible diplomatic solution to the Iran conflict. Brent crude futures declined by $4.41, closing at $79.36 per barrel, representing a 5.3% loss. Meanwhile, U.S. West Texas Intermediate futures ended the session at $75.77, down $4.57, or 5.7%.
This morning, Brent futures declined $1.17, or 1.47%, to $78.19 per barrel, and the WTI futures dropped $1.47, or 1.94%, to $74.30 per barrel.
Meanwhile, gold futures grew by 0.64% to $4,179.30 per Troy ounce.
