Thailand’s SET Index closed at 1,328.12 points, increased 4.74 points or 0.36% with a trading value of 47.98 billion baht. The analyst stated that the Thai stock market extended gains as fears over a U.S. economic downturn eased, prompting investors to anticipate an interest rate reduction by the Federal Reserve.
Within the country, favorable political advancements contributed to market optimism, leading the analyst to assert that Thailand’s stock market has likely overcome its least favorable phase in the first quarter of 2024.
The analyst expected the market to trade narrowly tomorrow.
China decided to keep its benchmark lending rates steady during the monthly fixing on Tuesday, which was in line with the forecasts of the market. The one-year loan prime rate (LPR) remained at 3.35%, while the five-year LPR was also retained at 3.85%.
A recent survey by Reuters involving 37 market players revealed that all participants anticipated the preservation of both rates. The majority of loans in China, both new and existing ones, rely on the one-year LPR, whereas the pricing of mortgages is influenced by the five-year rate.
The Bank of Thailand (BOT) is expected to keep its one-day repo rate at 2.50% on Wednesday, following recent political upheaval as the country awaits the establishment of a new cabinet. Paetongtarn Shinawatra, daughter of former Thai ex-PM Thaksin, has assumed office as the youngest prime minister after Srettha Thavisin was ousted by the Constitutional Court last week.
Despite the political turmoil, the central bank is likely to halt any rate adjustments, with Paetongtarn indicating that she may uphold many of the previous administration’s policies.
Japan is stepping up its promotional campaigns to increase seafood exports to various destinations in Asia, the U.S., and Europe to address the sales gap resulting from a year-long Chinese import prohibition, following the release of treated water from the damaged Fukushima nuclear power plant into the Pacific Ocean by Tokyo Electric Power in August of the previous year.
Export figures for agricultural, forestry, and fishery products from Japan in the first half of 2024 dipped for the first time since 2020, primarily due to a 43.8% decline in exports to China. Among the most affected products were scallops, which experienced a 37% drop year-on-year.
