Market reaction to events in the Red Sea were muted in Asia on Friday morning, with most shipping equities showing only marginal gains in early trading.
While China container freight futures were close to their 20% daily limit, liner stocks, perhaps already at extended levels, failed to match this increase.
Hong Kong-listed Chinese containership giant Cosco Shipping Holdings was up just 2.5%, and there was a similar increase at Cosco-controlled Orient Overseas Container Line.
The one exception was Korea Line in Seoul, which was up more than 15% in early trading, while HMM and Pan Ocean posted only single-digit increases.
In the US, Zim was up more than 6% in after-hours trading and suezmax tanker operator Nordic American Tankers rose 5%.
Reaction in the US was mixed.
Republican House of Representatives speaker Mike Johnson backed the decision by President Joe Biden to launch the attacks.
“This action by US and British forces is long overdue, and we must hope these operations indicate a true shift in the Biden Administration’s approach to Iran and its proxies that are engaging in such evil and wreaking such havoc,” he said in a post on X.
“They must understand there is a serious price to pay for their global acts of terror and their attacks on US personnel and commercial vessels. America must always project strength, especially in these dangerous times.”
However, Biden is facing a backlash from some of his own party. Several progressive Democratic lawmakers, including Rashida Tlaib of Michigan, Summer Lee of Pennsylvania and Val Hoyle of Oregon, took to X to question the decision.
“The President must come to Congress before launching a strike and embroiling the US in another conflict. Article I of the Constitution demands this of both Democratic and Republican presidents. Americans don’t want more of our tax dollars funding these endless wars,” said congresswoman Lee.
