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▲ Asian stock market, US, Iran, Strait of Hormuz/AI generated image
The warmth of the US tech stock rally faded in just one day. Asian markets, taking advantage of thin trading due to holidays, were once again swayed by interest rate and oil price variables.
According to the Associated Press on June 19 (local time), Asian markets showed weakness on Friday amidst the closure of major Greater China markets. The optimism generated by the US-Iran ceasefire agreement lost momentum as high-level talks concerning the resumption of Iran's nuclear program negotiations and the normalization of oil shipments through the Strait of Hormuz were postponed, and US futures also declined. US stock markets were closed on Friday for the Juneteenth holiday.
Investor sentiment was also weighed down by the possibility of interest rate hikes by major central banks, including the US Federal Reserve. Japan's Nikkei 225 fluctuated before closing flat at 71,082.81. The Japanese government announced that consumer prices, excluding volatile fresh food, were unchanged, but analysts believe prices could rise again in the coming months despite the burden of rising fuel costs. The Bank of Japan continued its gradual departure from a long period of ultra-low and negative interest rate policies by raising its benchmark interest rate to 1%, its highest level in 30 years, this week.
South Korea's Kospi fell 0.5% to 9,019.22, and Australia's S&P/ASX 200 traded down 1.1% at 8,818.40. India's Sensex dropped 1%. Hong Kong, Shanghai, and Taiwan markets were closed for the Dragon Boat Festival holiday, making overall trading in Asian markets quiet.
On the previous day, the New York stock market largely recovered the previous day's losses, securing weekly gains, buoyed by strong performance in large-cap tech stocks. The S&P 500 rose 1.1% to 7,500.58, the Dow Jones Industrial Average gained 0.1% to 51,564.70, and the Nasdaq composite surged 1.9% to 26,517.93. Intel (INTC) jumped 10.6% after US President Donald Trump announced that Intel would produce semiconductors for Apple (AAPL) in the US. Nvidia (NVDA) rose 3%, and Micron Technology (MU) climbed 8.7%. In contrast, Elon Musk's rocket and AI company SpaceX continued its weakness for the second day since its US market debut, falling an additional 3.6% after a 4.9% decline the previous day.
Oil prices showed fluctuating direction despite news of a US-Iran ceasefire agreement and the reopening of the Strait of Hormuz. Brent crude, the international benchmark, closed up 0.4% at $79.85 per barrel after declining for most of the trading session, while the US benchmark crude fell 0.2% to $75.85 per barrel. Earlier on Friday, Brent crude was down 0.5% at $79.34 per barrel, and the US benchmark crude also fell 0.5% to $75.37 per barrel. Airline stocks rose on expectations of easing oil price burdens, with American Airlines up 3.7%, United Airlines up 2.1%, and Carnival (CCL.LN) up 3.2%. In contrast, Exxon Mobil (XOM) fell 2.1%, and Chevron (CVX) declined 2.2%.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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