Asia market: Tariff aftershocks linger as Oil markets eye OPEC

Following yesterday's tariff threats from the Trump administration, Asia-Pacific markets awoke unsettled, still feeling the aftershocks on Wednesday. Despite Wall Street's rally, during which the S&P 500 and Dow Jones soared to record-breaking heights, local markets showed mixed results. This hesitance highlights the region's sensitivity to the volatile US trade policy landscape. Like we said earlier, you want to skate to where the puck is heading. 

Oil prices showed some resilience, balancing on the knife-edge of global geopolitical developments and OPEC  decisions. West Texas Intermediate steadied just below $69 a barrel, finding some footing after shedding over 3% in the preceding sessions, buoyed by the potential for enduring peace. Brent crude, meanwhile, lingered around $73.

As OPEC+ gears up for a pivotal meeting this weekend, there's strong anticipation that the consortium will defer a January production increase, opting to extend the current output restraint amidst mounting concerns over a surplus. Despite these maneuvers, oil prices have not yet adjusted to the increasing possibility of geopolitical detente in Eastern Europe or the ambitious plans of the Trump administration to significantly ramp up U.S. production by 3 million barrels per day, which will eventually force OPEC's hand for fear of losing market share.

Range trading at the lower end of the range reflects a market that is cautiously navigating the ongoing recalibrations of supply and demand, still wary of selling too far in case another geopolitical headline hits the wire.