On Monday morning (24 February, 9:21 AM, GMT+7, Bangkok time), most major indices in Asia Pacific exhibited a downward trend, following Wall Street’s poorest performance of the year last Friday. This was due to underwhelming U.S. economic data indicating a decelerating economy and persistent inflation concerns.
Fresh economic data from the U.S. sparks investor concerns, leading to a rush to bonds and significant yield drops. The University of Michigan’s consumer sentiment index dropped to 64.7 in February, a nearly 10% decline, with worries over higher inflation and possible new tariffs cited. The five-year inflation outlook hit 3.5%, the highest since 1995.
U.S. existing home sales fell to 4.08 million units, while the U.S. services purchasing managers’ index fell into contraction territory for February, per S&P Global.
In Singapore, the nation is scheduled to announce its January inflation figures later today, with a Reuters survey indicating a projected consumer price index of 2.15% year-on-year, up from December’s 1.60%. The poll also anticipates a core inflation rate, excluding accommodation and private transport expenses, to increase by 1.5% year-on-year, a drop from the previous month’s 1.8% surge.
Meanwhile, markets in Japan were closed for a public holiday.
South Korea’s KOSPI decreased by 0.8% to 2,633.29, and Australia’s ASX 200 slid by 0.13% to 8,285.1.
As for stocks in China, Shanghai’s SSEC dipped by 0.16% to 3,373.7. Shenzhen’s SZI declined by 0.09% to 10,981.42, while Hong Kong’s HSI surged by 0.13% to 23,508.35.
Meanwhile, the US stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) fell by 1.69% to 43,428.02. NASDAQ lost 2.2% to 19,524.01, and S&P 500 plummeted by 1.71% to 6,013.13. VIX jumped by 16.28% to 18.21.
As for commodities, oil prices settled lower on Friday as investors navigated through diminishing Middle East risk premiums and uncertainties surrounding a potential peace agreement in Ukraine. Brent futures dropped $2.05 or 2.68% to $74.43 a barrel, and the West Texas Intermediate (WTI) slumped $2.08 or 2.87% to $70.40 per barrel.
This morning, Brent futures contracted 1 cent or 0.01% to $74.42 a barrel, and the WTI shrank 10 cents or 0.14% to $70.3 per barrel.
Meanwhile, gold futures edged down 0.4% to $2,941.3 per Troy ounce.
