Thailand’s SET Index closed at 1,454.84 points, increased 19.07 points or 1.33% with a trading value of 67.69 billion baht. The analyst stated that the Thai stock market rose sharply as expected, in tandem with the international markets after the US Federal Reserve announced a 50-basis-point rate cut decision. This gave a positive sentiment for big-cap stocks benefiting from the downward trend of interest rates, including electronic components, power plant, and retail stocks.
The analyst expected the market to trade sideways tomorrow.
Donald Trump, the Republican candidate, has expressed dissatisfaction with the Federal Reserve’s recent cut on its benchmark interest rate. He pointed that this move could either indicate an economical uncertainty or a political move.
Hong Kong Monetary Authority (HKMA) cut its interest rate by 50 basis points to 5.25%, following the U.S. Federal Reserve’s own cut.
Hong Kong’s policy was in complement with the United States, as the city’s currency is tied to the U.S. dollar at around 7.75-7.85 per dollar.
A Reuters poll indicated that there is widespread anticipation for China to lower its main policy and benchmark lending rates on Friday after the US Federal Reserve’s significant interest rate reduction helped mitigate risks of sharp yuan depreciation.
The divergence in monetary policies and a weakening Chinese yuan have previously restricted Beijing from implementing substantial policy loosening measures.
