On Friday (11 September, 9:28 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific declined as investors assessed the likelihood of an extended conflict between the United States and Iran.
Market sentiment also reflected uncertainty after senior White House aides reportedly advised President Donald Trump that hostilities could persist beyond the end of his current term, according to sources cited by The Wall Street Journal. This stands in contrast to Trump’s public remarks earlier in the week, when he predicted that fighting would quickly subside after the midterm elections.
Escalating tensions contributed to a rally in oil markets on Thursday. U.S. benchmark West Texas Intermediate crude futures climbed above $100 per barrel, and both WTI and Brent contracts closed at their strongest levels since May 19.
In addition to geopolitical factors, investors considered fresh economic data. The U.S. producer price index for August showed a monthly increase of 0.4%, taking the annual rate to 5.4%.
Attention now turns to Friday’s upcoming release of the August consumer price index. Economists surveyed by Dow Jones expect the figure to rise 0.4% from the prior month and 3.4% year-on-year. This reading is expected to be a key input for the Federal Reserve’s interest rate meeting set for September 16.
Japan’s NIKKEI slumped by 2.74% to 63,479.63. South Korea’s KOSPI contracted by 2.48% to 6,859.30, and Australia’s ASX 200 dropped by 1.34% to 8,701.40.
As for stocks in China, Shanghai’s SSEC shrank by 1.65% to 3,869.29. Shenzhen’s SZI plunged by 1.87% to 13,363.72, and Hong Kong’s HSI lost 1.16% to 24,664.07.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) decreased by 0.60% to 52,064.10. NASDAQ plummeted by 0.65% to 26,081.72, and S&P 500 declined by 0.58% to 7,591.70. VIX soared by 8.38% to 17.84.
As for commodities, oil prices settled higher on Thursday, driven by the most significant increase in shipping-related attacks since the Middle East conflict began, while concerns mounted over additional disruptions to supply. Brent crude futures finished the session $6.42 higher, a gain of 6.34%, closing at $107.63 per barrel. U.S. West Texas Intermediate crude advanced $6.43, or 6.69%, settling at $102.48 per barrel.
This morning, Brent futures gained 29 cents, or 0.27%, to $107.92 per barrel, and the WTI futures surged 29 cents, or 0.28%, to $102.77 per barrel.
Meanwhile, gold futures dipped by 0.79% to $4,372.60 per Troy ounce.
