On Thursday (10 September, 9:22 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific exhibited a downward trend, reflecting weakness in U.S. equities as concerns grew over surging oil prices and ongoing geopolitical tensions in the Middle East.
The rise in energy costs, particularly after Brent crude futures surpassed $100 per barrel, was linked to intensified confrontations between the United States and Iran in the Persian Gulf—a development that has heightened worries about disruptions to oil shipments through the Strait of Hormuz.
Meanwhile, U.S. stocks remained under pressure amid an uptick in Treasury yields. This followed the U.S. Treasury Department’s decision to significantly increase its long-term debt buyback program, raising planned repurchases to $6 billion, three times the standard amount. This comes barely a month after authorities revealed intentions to more than double the volume of government debt buybacks.
Investors are turning their attention to two forthcoming reports. The U.S. August producer price index, due Thursday stateside, is anticipated by economists surveyed by Dow Jones to show a 0.3% monthly increase and a 5.3% year-over-year rise. Following that, the consumer price index is set for release on Friday, with projections pointing to a 0.4% monthly climb and a 3.4% yearly gain.
Japan’s NIKKEI dropped by 0.86% to 64,582.88. South Korea’s KOSPI slumped by 1.50% to 6,945.90, and Australia’s ASX 200 plummeted by 1.77% to 8,753.60.
As for stocks in China, Shanghai’s SSEC decreased by 0.33% to 3,938.43. Shenzhen’s SZI lost 0.86% to 13,604.92, and Hong Kong’s HSI contracted by 1.16% to 24,981.06.
The U.S. stock markets edged down on Wednesday as the Dow Jones Industrial Average (DJIA) declined by 0.77% to 52,380.66. NASDAQ shrank by 0.64% to 26,253.34, and S&P 500 plunged by 0.48% to 7,636.36. VIX rose by 4.71% to 16.46.
As for commodities, oil prices settled higher on Wednesday following intensified military activity involving U.S. and Iranian forces, with investors growing concerned about possible knock-on effects on inflation and rising energy costs. Brent crude ended the session up 3.4% at $101.21 per barrel. U.S. West Texas Intermediate rose $3.02, or 3.25%, to settle at $96.05 per barrel.
This morning, Brent futures slid 2 cents, or 0.02%, to $101.19 per barrel, and the WTI futures climbed 30 cents, or 0.31%, to $96.35 per barrel.
Meanwhile, gold futures dipped by 0.11% to $4,455.90 per Troy ounce.
