Global market wrap: Asian stocks extend decline as US reinstates Iran naval blockade; oil, gold prices jump

We are back with quick updates on global stock markets, commodities and corporate developments that you shouldn’t miss today.

Asian markets extended declines on Tuesday after US President Donald Trump formally notified Congress that the country is once again at war with Iran.

After witnessing steep correction on Monday, South Korea’s benchmark Kospi dropped another 3.6% on Tuesday to hover around 6,561. Japan’s Nikkei 225 fell around 0.7% to 66,767.

China’s Shanghai Composite index also declined 0.66% to 3,888, while Hong Kong’s Hang Seng Index was trading lower by 0.9% to 23,998.

Australia’s S&P/ASX 200 was down 0.5% to 8,764, while Singapore’s Straits Times slipped 0.4% to 5,447 even as the country’s economic growth numbers for the second quarter came in better than expected.

US stock futures were trading lower on Tuesday as the country completed a new wave of offensive strikes against Iran. S&P 500 futures fell 0.3%, Nasdaq 100 futures declined 0.4%, while futures tied to the Dow were trading lower by 0.37%.

In the regular trading session on Monday, the S&P 500 had lost 0.8%, while the Nasdaq 100 had declined 1.6%. The Dow Jones Industrial Average had also slipped around 0.3% each.

Oil prices rose again on Tuesday after surging more than 9% in the previous session on Trump’s plans to resume naval blockade of ships going to and from Iranian ports. The US crude oil futures for July delivery rose 1.8% to $79.55 per barrel by 2358 ET, while Brent futures for August delivery gained 1.6% to $84.62 per barrel.

Snapping the losing streak, gold prices increased on Tuesday driven by rising geopolitical tensions. Spot gold rose 0.4% on Monday to $4,016 per ounce by 0358 GMT, while US gold futures for ​August delivery were up 0.4% to $4,022 per ounce.

Here’s a look at some major developments across global markets:

SK Hynix shares slide over 20% in two days

Shares of South Korean chipmaker SK Hynix have slid around 20% in South Korea in the past two days as traders settled their positions and booked profit after the company’s successful ADR (American Depository Receipt) listing on Nasdaq on Friday.

The stock declined as much as 9% on Tuesday after closing down over 15% on Monday on the Korean exchange.

SK Hynix’s ADR also plummeted 9.3% on Monday to $152.35 on its second day of Nasdaq trading, closing near its initial public offering (IPO) price of $149, after the correction in the share price in South Korea.

SpaceX shares trading near IPO price

After creating huge buzz in the market for their blockbuster stock market debut in June, shares of Elon Musk-led SpaceX have erased all their gains within a month of listing and closed at their lowest level on Monday at $139.14 apiece. This is close to the stock’s IPO price of $135 and over 38% lower than its record high of $225.64.

The stock price declined 4.2% on Monday after dropping 4.5% on Friday. The stock has been especially volatile after recently being added to the Nasdaq-100 index.

Singapore’s Q2 GDP growth at 5.7%, beats estimates

Despite tensions in the Middle East, Singapore’s economy has managed to grow 5.7% in the second quarter on account of a strong manufacturing sector.

Growth in the gross domestic product (GDP) in the quarter ended June was lower than the revised 6.3% seen in the first quarter, but higher than the 5.5% widely expected by economists.

The manufacturing sector expanded 10.4% year-on-year in Q2 compared with 8.4% in Q1, while growth in the services sector slowed to 4.6% in Q2 from 6.2% in Q1.