On Wednesday (19 August, 9:17 AM, GMT+7, Bangkok time), major indices in the Asia Pacific retreated across the board as concerns over surging oil prices and ongoing volatility in global bond markets weighed on investor confidence.
Persistent geopolitical risks in the Middle East have driven caution, following President Donald Trump’s statement that the United States is not engaged in any form of dialogue with Iran and does not intend to initiate talks. Despite Trump’s reassurance that the Strait of Hormuz remains open and free of water mines, markets remain wary about the possibility of supply interruptions.
The technology sector also came under renewed pressure as bond yields hovered at levels not seen in decades. Investor sentiment toward tech shares has turned cautious in the face of inflation, increased government expenditures, and a growing supply of new debt.
Attention is now on the upcoming release of minutes from the most recent Federal Open Market Committee meeting, expected later Wednesday stateside. Market participants are closely monitoring the report, particularly in light of the visible split within the central bank during July’s gathering.
Meanwhile, traders are also recalibrating expectations for U.S. monetary policy, with more than a third now anticipating a Fed rate hike, a notable increase from the previous week.
Japan’s NIKKEI dropped by 2.38% to 65,855.79. South Korea’s KOSPI plummeted by 4.75% to 6,543.64, and Australia’s ASX 200 declined by 0.32% to 9,041.00.
As for stocks in China, Shanghai’s SSEC fell by 1.31% to 3,938.16. Shenzhen’s SZI slumped by 2.45% to 14,263.83, and Hong Kong’s HSI slipped by 0.32% to 25,388.55.
The U.S. stock markets edged down on Tuesday as the Dow Jones Industrial Average (DJIA) decreased by 0.22% to 53,343.40. NASDAQ lost 1.33% to 26,289.71, and S&P 500 contracted by 0.69% to 7,691.76. VIX surged 4.28% to 15.84.
As for commodities, oil prices settled higher on Tuesday after Iran signaled a shift to a more aggressive approach and stated that the Strait of Hormuz would stay closed. The U.S., on the other hand, affirmed it would not lengthen a ceasefire. Brent crude closed at $91.02 per barrel, up 15 cents or 0.17%, and U.S. West Texas Intermediate finished at $84.94 per barrel, an increase of 44 cents or 0.52%.
This morning, Brent futures gained 90 cents, or 0.99%, to $91.92 per barrel, and the WTI futures rose 92 cents, or 1.08%, to $85.86 per barrel.
Meanwhile, gold futures slid by 0.30% to $4,407.30 per Troy ounce.
