US equities opened higher on Friday as soft economic data strengthened expectations that the Federal Reserve may cut interest rates later this year . Investors also remained cautious as geopolitical tensions in the Middle East continued to influence market sentiment and energy prices. Market Rebound After Recent Losses The S& P 500 rose 0.8% in early New York trading, recovering after three consecutive sessions of declines . The Nasdaq 100 also gained 0.8% , supported by technology stocks, although the Magnificent Seven index remained near ...
Asian equities and currencies extended losses for a second straight session as crude oil hovered near US$100 per barrel, intensifying inflation concerns and strengthening the US dollar.
Oil Shock Drives Risk-Off Mood
MSCI Emerging Markets Index fell 1.4% on Friday and is down nearly 8% since late February when the war began.
The emerging-market currency gauge slipped 0.6%, bringing its decline to roughly 2% over the same period.
Meanwhile, the US dollar index climbed to its highest level since late November, supported by:
Safe-haven demand
The US’s position as a major fossil fuel exporter
Key Point: Elevated oil prices are amplifying inflation risks and strengthening the dollar, pressuring Asian assets.
Strait of Hormuz Remains the Flashpoint
Iran’s Supreme Leader Mojtaba Khamenei pledged to keep the Strait of Hormuz closed — a critical route that handles about 20% of global oil supply.
Although Washington introduced a 30-day waiver to ease supply constraints from stranded Russian crude shipments, markets remain focused on:
Shipping disruptions
Rising insurance costs
Escalating geopolitical tensions
Crude prices staying near US$100 are raising fears that inflation could reaccelerate across emerging Asia.
Regional Equity Markets Under Pressure
Losses were broad-based across Asia:
Indonesia dropped over 2%, with year-to-date losses near 16.4%, the worst in the region
Thailand fell 1.5%
South Korea extended losses by 1.7%
Taiwan and Malaysia declined more than 0.5%
The Philippines fell 0.9%
India lost 1.4%
South Korea and Taiwan have been particularly hard hit as investors trim exposure to AI-linked and technology stocks following strong early-year rallies.
South Korea has triggered circuit breakers twice in the past two weeks, alongside sidecar measures to calm futures trading volatility.
Currency Pressures Mount
In currency markets:
The Indian rupee slid to a record low
The Chinese yuan strengthened to its strongest level in a year against major trading partners
Investors are increasingly pricing in tighter policy stances from regional central banks. At the same time, any delay in US rate cuts would further support the dollar and keep pressure on Asian currencies.
Key Point: A stronger dollar and tighter monetary expectations are compounding the oil-driven selloff in Asia.
Bottom Line
With crude oil hovering near US$100 and the Strait of Hormuz tensions unresolved, Asian markets remain vulnerable.
Rising inflation risks, stronger dollar momentum, and reduced expectations for rate cuts are driving a broad risk-off move across emerging Asia.
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