Last week, geopolitical tensions in the Middle East influenced the performance of stocks in the Asia-Pacific region, resulting in mixed outcomes across different markets.
Southeast Asian Markets
Vietnam: The Ho Chi Minh Index declined by 1.08% to close the week at 1,315.51 points.
Indonesia: The Jakarta Composite Index (JKSE) rose by 0.74% to 7,166.07 points.
Singapore: The Straits Times Index dropped by 0.58% to 3,911.42 points.
Malaysia: The Kuala Lumpur Composite Index increased by 0.09% to 1,518.11 points.
Philippines: The Manila Index rose by 0.29% to 6,395.59 points.
Thailand: The SET Index fell by 1.21% to 1,122.70 points.
Other Asia-Pacific Markets
Most stock indices in the region saw gains, though they were modest:
Japan: The Nikkei 225 index rose by 0.25% (92.64 points) to close at 37,834.25.
South Korea: The KOSPI index increased by 2.94% (82.57 points) to 2,894.62.
Australia: The S&P/ASX 200 index gained 0.37% to 8,547.40 points.
Market Analysis
Zhang Yuguai, a member of the academic committee of the International Finance Forum and director of the Center for Financial Innovation and Development at Shanghai International Studies University, told the 21st Century Business Herald that the decline in Asia-Pacific stock markets last week was primarily due to two factors.
First, the market was dominated by a wait-and-see attitude, with investors focusing on ongoing trade negotiations between China and the United States. Second, the escalation of tensions in the Middle East heightened geopolitical risks, leading to increased prices for international oil and gold, and causing stock market volatility.
Chen Li, an assistant researcher at the ANBOUND Research Center, noted that the “dollar tide” effect also impacted capital flows in Asian stock markets. Last week, US Treasury yields initially stabilized before falling, which put pressure on capital outflows from Asian stock markets.
Chen Li further stated that the future trend of the Asia-Pacific stock market will largely depend on US tariff policies and the direction of the situation in the Middle East.
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