Oil Spike and US Inflation Drag Asian Shares Lower
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- Trump branded Iran's ceasefire terms ‘totally unacceptable’, pushing oil prices sharply higher.
- US inflation rose to 3.8% YoY in April, with the PPI up 6% YoY and core PPI up 5.2% YoY.
- OPEC cut its 2026 oil demand growth forecast to 1.17 million bpd and OPEC+ output fell 1.74 million bpd in April after the Hormuz closure.
- Indonesian rupiah fell to a record low of 17,525 per dollar.
- SET index closed at 1,517.95, up 1.2% weekly, while foreign investors net bought 9.89 billion baht and institutions net sold 11.25 billion baht.
Why it matters: Investors in Asian equities face tighter margins as oil spikes and US inflation erode returns, while foreign capital flows in and institutions pull out, and Indonesia’s currency weakness raises import costs.
