Asian Stocks Rise, Trump's Iran Strike Delay a New Catalyst!
Asia-Pacific markets opened mostly higher on Tuesday (May 19), helped by a slight decline in oil prices after US President Donald Trump announced a postponement of a strike on Iran. At 8:01 p.m. ET, June WTI fell 1.27% to US$107.28 per barrel, while July Brent fell 2.67% to US$109.11 per barrel.
Sentiment improved as the market interpreted the strike delay as a sign of negotiating space. However, Trump still warned that the US military must be ready for a large-scale strike if an "acceptable" deal is not reached, maintaining high geopolitical risks amid the fragile ceasefire.
In Japan, the Nikkei 225 rose 0.68% and the Topix strengthened 1.16%. Australia also traded positive, with the ASX up 1.08%. Meanwhile, South Korea weakened, with the Kospi down 1.06% and the Kosdaq remaining flat. Hang Seng futures were at 25,558, lower than the index's last close of 25,675.18.
Japanese investors were also digesting first-quarter GDP data, which showed the economy grew 2.1% (annualized), above the consensus estimate of 1.7% and higher than the 1.3% growth in the previous quarter. This figure does not fully capture the impact of the Iran war that broke out in late February. Market attention also turned to the meeting between Japanese Prime Minister Sanae Takaichi and South Korean President Lee Jae Myung, scheduled for today.
In the US, futures edged higher: S&P 500 futures rose 0.1%, Nasdaq 100 futures rose 0.2%, and Dow futures rose 25 points. During Monday's regular session, the S&P 500 fell 0.07% to 7,403.05, the Nasdaq fell 0.51% to 26,090.73, while the Dow rose 159.95 points to 49,686.12.
Despite the correction in oil prices, the market assesses the risk of normalizing energy supplies as remote, as the Strait of Hormuz remains closed by Tehran and the US continues to block Iranian ports. Moody's assesses that the conflict, which has entered its third month, leaves little chance of a quick resolution and the full reopening of Hormuz.
Five key points today:
- Asian markets mostly rose as oil softened
- June WTI US$107.28 and July Brent US$109.11 at 8:01 PM ET
- Japan supported by Q1 GDP of 2.1% above expectations
- Trump postponed the attack, but still prepared the option of escalation, and Hormuz remains closed, so energy and inflation risks remain factors determining the direction of risk assets.
- Ayu from Newsmaker believes that this time Asia moved in a different direction from Wall Street because the market was responding to a new factor, namely the US's move to halt attacks on Iran after Wall Street closed, causing sentiment to shift first (asd)
Source: Newsmaker.id
