Asian stocks today: Asian markets opened in negative territory on Tuesday, 14 July, after US President Donald Trump proposed imposing a fee on ships transiting the Strait of Hormuz and reintroduced a blockade on Iranian ports.
Japan’s Nikkei 225 declined 1.17%, while the broader Topix index slipped 0.51%. South Korea’s Kospi dropped 2.01%, and the small-cap Kosdaq fell 1.8%.
Australia’s benchmark S&P/ASX 200 also opened lower, trading down 0.29%. Hong Kong’s Hang Seng Index futures were trading at 24,158, below the index’s previous closing level of 24,213.72.
Why Asian markets are falling today?
The semiconductor sector remained under pressure after SK Hynix Inc.’s American depositary shares plunged 9.3%, as a sharp AI-driven selloff in South Korea extended to US markets. US equity-index futures also traded lower.
Brent crude advanced 1.6% to around $84.65 per barrel after surging 9.6% on Monday, marking its biggest single-day gain since May 2020. The rally came after President Donald Trump reinstated the US blockade of Iranian ships passing through the Strait of Hormuz and announced a 20% reimbursement charge on all other cargo moving through the strategic waterway.
US Treasury prices declined across maturities on Monday as traders increased expectations of an interest-rate hike amid rising oil prices. Money markets priced in nearly a 50% probability of a Federal Reserve rate increase in July after Governor Christopher Waller indicated policymakers may need to tighten monetary policy further to curb inflationary pressures. Meanwhile, gold and silver prices slipped, while the Bloomberg Dollar Spot Index posted its strongest gain since June 23.
The latest exchange of attacks between the US and Iran has diminished hopes of a near-term restoration of normal shipping through the Strait of Hormuz. The renewed geopolitical tensions have added to market uncertainty ahead of a crucial week that includes the start of the earnings season, the release of US inflation data, and Federal Reserve Chair Kevin Warsh’s testimony before Congress—events that are expected to shape the outlook for interest rates.
The AI-driven selloff that gripped South Korean stocks on Monday also spread to US markets, highlighting growing concerns that the artificial intelligence rally may have become overstretched. The decline in South Korea’s Kospi index reflects the heightened volatility in a market that had significantly outperformed global peers due to the AI boom.
Investors are now awaiting the latest US inflation figures after Federal Reserve Governor Christopher Waller suggested that policymakers may need to raise interest rates in the near term if underlying inflation continues to show persistent price pressures.
US stock market today
US stock markets ended lower on Monday, weighed down by losses in technology stocks after President Donald Trump announced the reinstatement of a blockade on Iranian ports, marking the latest escalation in US-Iran war. The move pushed oil prices higher and weakened investor risk appetite.
The Nasdaq Composite led the declines among the three major US indexes, followed by the S&P 500. Meanwhile, the Dow Jones Industrial Average limited its losses as gains in energy stocks, driven by a surge in crude oil prices amid restricted traffic through the Strait of Hormuz, provided some support.
The Dow Jones Industrial Average fell 138.31 points, or 0.26%, to close at 52,498.70. The S&P 500 dropped 59.92 points, or 0.79%, to 7,515.47, while the Nasdaq Composite declined 408.43 points, or 1.55%, to settle at 25,873.18.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.