On Thursday (20 August, 9:20 AM, GMT+7, Bangkok time), major indices in the Asia Pacific exhibited an upward trend, lifted by gains in U.S. markets that ended a three-day slide.
The rebound on Wall Street followed a decline in yields of long-term U.S. government bonds, after the Treasury announced an increase in planned buybacks of 10-, 20-, and 30-year securities over the coming months. This move comes after the 30-year bond yield hit its highest level in nearly two decades earlier in the week.
The recent surge in global bond yields has been attributed to investor concerns about mounting government debt and persistent inflation, alongside growing geopolitical risks. Market sentiment has been further unsettled as tensions in the Middle East intensified.
President Donald Trump declared an “Economic Warfare” campaign against Iran, warning of severe retribution for nations that align with Tehran. He previously stated that there are currently no talks taking place with Iran. Meanwhile, the United Arab Emirates suspended trade with Iran following reports that two missiles had targeted its territory.
Investors are now focused on the release of weekly U.S. jobless claims data, with economists surveyed by Dow Jones expecting 210,000 first-time claims for the week ending August 15.
Japan’s NIKKEI rose by 1.05% to 66,011.07. South Korea’s KOSPI jumped by 5.93% to 6,854.85, and Australia’s ASX 200 climbed by 0.12% to 9,064.50.
As for stocks in China, Shanghai’s SSEC increased by 0.68% to 3,921.00. Shenzhen’s SZI grew by 1.36% to 14,078.67, and Hong Kong’s HSI advanced by 1.03% to 25,758.53.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) added 0.22% to 53,463.05. NASDAQ gained 0.16% to 26,331.09, and S&P 500 was up by 0.21% to 7,707.98. VIX plummeted by 6.00% to 14.89.
As for commodities, oil prices settled higher on Wednesday amid growing concerns over increasing instability in the Middle East following the UAE’s move to halt all financial and economic dealings with Iran, while persistent delays in shipping activity through the Strait of Hormuz added to supply uncertainty. Brent crude finished at $91.62 per barrel, marking an increase of 60 cents or 0.7%. U.S. West Texas Intermediate crude settled 89 cents higher, or up 1.1%, at $85.83 a barrel.
This morning, Brent futures increased 52 cents, or 0.57%, to $92.14 per barrel, and the WTI futures surged 29 cents, or 0.34%, to $86.12 per barrel.
Meanwhile, gold futures rose by 0.17% to $4,552.90 per Troy ounce.
