Asia Under Pressure from Hormuz
Asian stock markets weakened on Wednesday (May 6), while oil prices fell slightly but remained above US$100 per barrel. The market is still monitoring the tug-of-war between the United States and Iran as they work toward a ceasefire, while simultaneously maintaining pressure around the Strait of Hormuz.
The MSCI Asia Pacific ex-Japan Index fell 0.3%, while Australian shares fell 0.4% in thin trading. Japanese and South Korean markets were closed for holidays, limiting trading activity in the Asian region.
Pressure was also evident on global futures markets. Nasdaq and S&P 500 futures each fell around 0.1%, while EUROSTOXX 50 futures fell 0.2% and FTSE futures fell 0.75%. This indicates that investors remain cautious about geopolitical risks that have not yet subsided.
Tensions have escalated again after the United States and Iran launched new attacks in the Gulf region on Monday. The two countries are still vying for control of the Strait of Hormuz through a maritime blockade, shortly after US President Donald Trump launched efforts to help stranded tankers and merchant ships pass through the vital energy trade route.
In the oil market, Brent fell 0.5% to US$113.85 per barrel, while US crude oil weakened 1.3% to US$105.03 per barrel. Despite the correction, oil prices remain high as the market remains concerned about potential supply disruptions from the Strait of Hormuz.
Beyond geopolitics, investors are also awaiting the results of major issuers this week, including Advanced Micro Devices and Pfizer. So far, most S&P 500 companies that have reported results have exceeded earnings and revenue estimates, with the technology sector remaining a key driver thanks to strong spending related to artificial intelligence. (asd)
Source: Newsmaker.id
