Asian Stocks Held, Oil Weakens
Asian stock markets moved relatively stable on Tuesday (July 21st) after experiencing pressure in the last three sessions. Investors remained cautious ahead of the release of major US technology company earnings reports this week, which will determine whether AI-based stocks can continue to thrive.
The MSCI Asia Pacific Index moved flat, with gains in Japan helping to offset declines in other regions. Japan's Topix rose 0.9% after reopening after a holiday, while the Australian stock market fell 0.5% and Hang Seng futures edged down 0.2%.
Brent oil prices fell 0.4% to around US$88.86 per barrel after closing at their highest level since mid-June. Despite the decline, the market remained wary of the risk of disruption to Saudi oil exports after the Houthi group threatened to block the Red Sea route.
Market sentiment was also clouded by the Middle East conflict. The US renewed attacks on Iranian targets after President Donald Trump asserted that Tehran would "pay" for the deaths of three US soldiers. Meanwhile, trade tensions also emerged after the Trump administration threatened new 50% tariffs on some Canadian goods.
As for the market impact, Asian stocks still have the potential to move cautiously as investors await the financial reports of major technology companies like Tesla and Alphabet. If the results are strong, stock sentiment could improve. However, if oil prices rise again due to the Iran conflict and Houthi threats, inflation risks could put pressure on bonds and stocks, and increase demand for safe-haven assets like the US dollar.(asd)
Source: Newsmaker.id
