Thailand’s SET Index closed at 1,332.08 points, decreased 28.94 points or 2.13% with a trading value of 57.49 billion baht. The analyst stated that the Thai stock market decreased and conformed with the regional markets, hitting the new lows in three and a half years. The decline was due to the selloff of stocks, as investors raised concerns over the risks from conflicts in the Middle East and the slower-than-expected interest rate cuts from the US Fed, which could lead bond yields and the US dollar to rise. Meanwhile, the weakened Thai baht was less attractive to foreign investors.
The analyst expected the market to potentially perceive a technical rebound if there were no additional negative factors.
South Korea’s central bank governor Rhee Chang-yong stated with reporters in Washington on Thursday that the bank would likely require at least one or two months to make a decision on domestic monetary policy, which he noted was largely affected by rising oil prices.
According to economists polled by Reuters, the Bank of Korea is expected to cut rates by 25 basis points in the second quarter of this year from the current level of 3.50% and another 25bps before the year end. Base rate is expected to stay at 2.50% by the second quarter of 2025.
The latest forecasts from the International Monetary Fund (IMF) indicate that the global economy is set to maintain its growth momentum similar to that of 2023 throughout 2024-25, with a simultaneous gradual decrease in both global headline and core inflation. While there have been slight adjustments for major economies compared to the January 2024 WEO Update, the overall forecast for global growth has not seen significant changes.
Notably, the United States is expected to show further growth, while other economies may experience modest downward revisions. Despite this, global growth forecasts remain higher than those in the October 2023 WEO.
Meanwhile, the outlook for inflation remains in line with the October 2023 WEO, with advanced economies experiencing a downward revision, offset by an upward revision for emerging markets and developing economies. The forecasts suggest that the medium-term prospects for global output and trade growth are at their lowest levels in decades, indicating a slowdown in the convergence towards higher living standards for middle- and lower-income countries.
Oil prices erased most of the gains in the early morning on Friday after Iran appeared to downplay the explosion in Isfahan that was previously reported as an attack by Israel.
ABC News later reported, citing a U.S. official, that the explosion in Iran was indeed caused by Israel. This development has captured the attention of investors who have been closely monitoring Israel’s response to the Iranian drone attacks on April 13. The geopolitical risk premium in oil prices had been easing throughout the week, with expectations that any Israeli retaliation against Iran would be tempered by international pressure.
Meanwhile, Reuters reported that an Iranian official told its reporter on Friday that explosions heard in Isfahan were a result of the activation of Iran’s air defence systems. The official confirmed that there was no missile attack against Iran.
