Friday, 17 July 2026
Global markets were sharply weaker as investors retreated from technology and semiconductor shares. The broader MSCI Asia-Pacific index fell approximately 2.7%, Japan’s Nikkei dropped more than 5%, and Taiwan’s market declined by more than 6% as concerns grew that valuations attached to the artificial-intelligence boom had moved too far ahead of earnings.
Nasdaq futures were also lower, indicating that the sell-off was likely to extend into the United States session.
Oil moved in the opposite direction. Brent crude traded near US$85 a barrel, supported by renewed conflict involving Iran and the United States and growing concern over shipping through the Strait of Hormuz.
Brent and US crude were heading towards weekly gains exceeding 10%, demonstrating once again how quickly geopolitical anxiety can become an inflationary problem.
The Japanese yen remained close to a four-decade low, increasing pressure on Tokyo to consider intervention.
A weaker yen helps Japanese exporters but raises the domestic cost of imported fuel and food. That tension is likely to feature prominently in our Japan report.
For Sri Lanka, the most important market to watch is not Wall Street but oil. A sustained Brent price above US$80 would place renewed pressure on fuel costs, electricity generation, transport and the trade balance. In other words, a crisis at Hormuz could arrive in Colombo disguised as a petrol bill.
