Asian stock markets opened in the red on Wednesday due to the US-Iran conflict, with South Korea experiencing a historic plunge in its Kospi index. Positive US employment data boosted gains in Wall Street and the Mexican Stock Exchange. President Claudia Sheinbaum assured that Mexico is working to prevent fuel price increases.
The conflict between the United States and Iran caused volatility in global markets, particularly affecting Asia. Seoul's stock exchange recorded a historic drop in the Kospi, while Japan's Nikkei fell, Hong Kong's Hang Seng reported losses, and China's CSI 300 also declined. Taiwan's Taiex suffered a plunge. Shares of companies like Hyundai Motor, Kia, and Hanwha Ocean fell, along with SoftBank.
In contrast, Wall Street closed higher thanks to ADP employment data showing more jobs added than expected. The Nasdaq rose 1.29% to 22,807.48 points, the S&P 500 advanced 0.78% to 6,869.50, and the Dow Jones gained 0.49% to 48,739.41. Fernando Suárez of Fintual stated: “Geopolitics will continue to be an important catalyst in the short term, but it is not the only factor. Markets are also watching the inflation trajectory, Federal Reserve decisions, and global growth evolution from developments in the Artificial Intelligence industry.”
In Mexico, the S&P/BMV IPC rose 2.91% to 70,428.03 units. The Mexican peso appreciated 0.44% to 17.55 per dollar, halting four sessions of losses, according to Banxico. Felipe Mendoza of EBC Financial Group noted: “In the coming sessions, the Mexican peso may continue navigating a scenario of high volatility dependent on the narrative of the conflict in Iran.”
In the energy sector, Qatar suspended part of its liquefied natural gas production after attacks on Ras Laffan, withdrawing nearly one-fifth of global supply. This threatens prices in Asia and Europe. Sheinbaum stated in her conference: “We are working with the Secretariat of Energy, particularly with the Federal Electricity Commission, so that it does not represent an increase in the pocket of Mexican men and women.” She explained that Mexico covers most oil consumption with domestic production and will activate IEPS subsidies if necessary to contain gasoline price hikes.
Crude prices moderated gains: West Texas Intermediate rose 1.72% to 75.94 dollars and Brent advanced 1.17% to 82.60. However, opinions highlight a “geopolitical tax” from higher costs in oil, insurance, and freight, with Brent reaching 85.10 dollars previously.
