Stocks Plunge in Asia Amid Escalating Geopolitical Tensions

Strategic Insights -

Asian markets witnessed significant losses, with Israeli strikes against Iran sparking a rush to safe-haven assets, while Thai stocks faced additional pressure from a volatile political situation and concerns over the economic outlook. Oil prices surged 13% in the immediate aftermath of the strikes, with Brent reaching $78 a barrel, its largest intraday jump since March 2022. The SET index moved within a narrow range, closing at 1,122.70 points, down 1.2% from the previous week, with daily turnover averaging 35.16 billion baht.

Key Takeaways:

  • Israel's strikes against Iran's nuclear sites sent shockwaves through global markets, causing oil prices to surge 13% and pressuring safe-haven assets.
  • Thai stocks were pressured by a cloudy political situation and concerns over the economic outlook, with the SET index closing at 1,122.70 points, down 1.2% from the previous week.
  • Institutional investors were net sellers of 1.09 billion baht, followed by brokerage firms at 149.70 million, while retail investors and foreign investors were net buyers.
  • A US appeals court allowed President Donald Trump to maintain most of the tariffs on China and other countries, with Trump stating that the US and China had agreed to extend their trade truce until mid-August.
  • The World Bank cut its 2025 global growth forecast to 2.3%, from 2.7% expected in January, citing trade tensions and reflecting a less than 10% global recession risk.
  • US consumer inflation was 2.4% year-on-year in May, up from 2.3% in April, with market expectations that the Federal Reserve will make two rate cuts in September and December.

Statistics:

  • Oil prices surged 13% immediately after Israel's strikes against Iran, with Brent reaching $78 a barrel.
  • The SET index moved within a narrow range, closing at 1,122.70 points, down 1.2% from the previous week.
  • Daily turnover averaged 35.16 billion baht.
  • Institutional investors were net sellers of 1.09 billion baht.
  • Retail investors and foreign investors were net buyers of 973.73 million baht and 263.92 million baht, respectively.
  • US consumer inflation was 2.4% year-on-year in May, with market expectations that the Federal Reserve will make two rate cuts in September and December.

Sources:

  • "Stocks fell in most Asian markets yesterday and oil prices jumped..." - THE NATION
  • "Oil prices surged 13% in the immediate aftermath of Israel's strikes against Iran..." - REUTERS
  • "The World Bank cut its 2025 global growth forecast to 2.3%, from 2.7% expected in January..." - THE FINANCIAL TIMES
  • "US consumer inflation was 2.4% year-on-year in May, up from 2.3% in April..." - BLOOMBERG