Asian stocks and crude oil prices surged amid uncertainty surrounding the situation around the Strait of Hormuz. The report also covers US economic data and developments in the gold and foreign exchange markets.
In morning trading on 10 August, Asian equity markets edged higher, with Japan's Nikkei 225 and South Korea's KOSPI posting modest gains, while the MSCI Asia Pacific Index also rose slightly. European stock futures, however, indicated a downward trend, and S&P 500 futures edged lower.
Crude oil prices rose against the backdrop of the unresolved situation around the Strait of Hormuz. Brent settled at $84.32 per barrel and WTI at $78.74, with the continued restrictions on shipping through the strait cited as a contributing factor.
Ahead of the release of the US Consumer Price Index (CPI), investors focused on the progress of inflation, and expectations for Federal Reserve rate hikes and cuts shifted. Expectations for a rate hike in September declined from the previous week, while some said the outlook could change depending on core CPI trends.
The earnings season for US companies also supported investor sentiment. Many stocks posted EPS growth of approximately 30% year on year, with growth among AI-related companies making a particularly strong contribution, according to some observers. Meanwhile, the dollar showed a downward trend, while gold traded at around $4,342 per ounce.