On Monday (14 September, 9:20 AM, GMT+7, Bangkok time), most major indices in the Asia-Pacific exhibited a downward trend as investors reacted to concerns over energy supply following the closure of Saudi Arabia’s vital East-West pipeline. The shutdown, prompted by a drone attack originating from Iraq that resulted in damage to the pipeline, heightened existing tensions in the Middle East.
The Saudi authorities have yet to reveal the extent of the pipeline’s damage or provide a timeline for resuming operations. Diplomatic efforts to address the situation suffered a setback when a planned meeting between Iran and Gulf Arab states in Oman was postponed shortly after the pipeline incident.
In the technology sector, sentiment around AI-related equities shifted after OpenAI CEO Sam Altman stated in a weekend interview that the company does not intend to launch an initial public offering this year, calling such a move ill-advised. This follows earlier comments from the company’s CFO Sarah Friar, who had indicated an IPO may take place by 2027.
Separately, Anthropic CEO Dario Amodei suggested that AI firms should consider slowing the rollout of their most advanced technologies due to safety concerns, while noting potentially difficult circumstances if China does not adopt similar measures.
As the week begins, investors are reconsidering their strategies in the AI sector. These developments arrive at the outset of an important week for global markets, with an upcoming Federal Reserve policy meeting under particular scrutiny as climbing energy costs pose inflationary risks.
Currently, futures tied to the federal funds rate reflect market expectations for a roughly 86% probability of an interest rate increase, based on data from the CME FedWatch tool.
Japan’s NIKKEI decreased by 1.06% to 63,330.91. South Korea’s KOSPI slumped by 2.57% to 6,732.00, while Australia’s ASX 200 rose by 0.15% to 8,754.20.
As for stocks in China, Shanghai’s SSEC declined by 0.21% to 3,880.10. Shenzhen’s SZI fell by 0.31% to 13,429.50, and Hong Kong’s HSI contracted by 0.41% to 24,702.87.
The U.S. stock markets edged up on Friday as the Dow Jones Industrial Average (DJIA) increased by 0.98% to 52,573.29. NASDAQ gained 0.96% to 26,333.03, and S&P 500 added 0.86% to 7,656.98. VIX plummeted by 11.21% to 15.84.
As for commodities, oil prices rose on Monday as the market reacted to fresh Houthi assaults in Saudi Arabia, combined with reported Iranian actions targeting vessels in the Gulf region. These followed the shutdown of a significant Saudi pipeline. Brent futures surged $2.43, or 2.32%, to $107.04 per barrel, and WTI futures advanced $2.34, or 2.34%, to $102.39 per barrel.
Meanwhile, gold futures dipped by 0.34% to $4,394.00 per Troy ounce.
