Asian stock markets saw mixed early trading on July 1, with South Korea's KOSPI being the weakest with a 1.8% decline; the previous day, the US Dow Jones Industrial Average closed at a record high of 52,319.20 points. KCM Trade Chief Market Analyst Tim Waterer said: "Although the oil market has already reflected that supply will gradually return to normal, the traffic volume in the Strait of Hormuz has not yet recovered to pre-war levels."
Asian Markets Early Closing Data on July 1
Early closing performance of Asian markets on Wednesday, July 1, is as follows:
Japan's Nikkei 225: up 0.6% to 70,463.72 points
Australia's S&P/ASX 200: down 0.4% to 8,744.50 points
South Korea's KOSPI: down 1.8% to 8,322.39 points (the weakest performer)
Shanghai Composite Index: up 0.1% to 4,099.41 points
Hong Kong stock market: closed (holiday)
US Stock Market Close on June 30: Dow Hits Record High, AI Stocks Drag Monthly Performance
US stocks closed higher for all three major indices on Tuesday (6/30): S&P 500 rose 58.93 points (+0.8%) to 7,499.36; Dow rose 136.46 points (+0.3%) to 52,319.20, a record high; Nasdaq rose 393.58 points (+1.5%) to 26,213.72.
Despite the day's gains, the S&P 500 recorded its first monthly decline of the month, mainly due to sharp pullbacks in AI concept stocks. Nvidia rose 1.6% on the day (narrowing its monthly decline), Microsoft rose 0.7% (monthly decline narrowed to below 18%), Oracle fell 1.6% (June decline near 36%).
Oil Edges Up, USD/JPY Rises to 162.67, Iran Negotiations Continue to Impact Markets
Oil edged higher on Wednesday: WTI crude rose 37 cents to $69.87 per barrel, Brent crude rose 30 cents to $73.25 per barrel. The 10-year US Treasury yield rose from 4.38% to 4.40% on Monday evening; in forex, USD/JPY rose from 162.55 to 162.67, EUR/USD fell from 1.1426 to 1.1405.
Tim Waterer said that the traffic volume in the Strait of Hormuz has yet to return to pre-war levels, which is a key indicator for observing oil market trends.
Frequently Asked Questions
Why has the traffic volume in the Strait of Hormuz not yet returned to pre-war levels?
KCM Trade analyst Tim Waterer pointed out that the oil market has already reflected that supply will gradually return to normal, but the actual traffic volume in the Strait of Hormuz has not yet reached pre-war levels. Reports indicate that two US envoys are in Qatar for technical consultations with mediators; the US and Iran are not conducting direct negotiations, and there is still uncertainty regarding the implementation of the Iran nuclear deal.
What is the main reason for the weak monthly performance of US stocks in June?
The S&P 500 recorded its first monthly decline in June after a strong Q2 rally, mainly due to sharp pullbacks in AI-related stocks. Oracle fell nearly 36% in June, Microsoft's monthly decline exceeded 18%. Reports indicate market concerns about whether these companies' massive investments in AI can generate sufficient productivity and profits.
What is the background of USD/JPY rising to 162.67?
Reports indicate that the US 10-year Treasury yield (4.40%) is much higher than Japanese government bonds, and the possibility of the Fed raising interest rates also puts pressure on the yen. USD/JPY rose from 162.55 to 162.67 on Wednesday.
