Regional shares advance after Wall Street rally
RECAP: Most Asian stocks edged higher on Friday, riding a tech-driven rally on Wall Street, while mounting expectations for a US interest rate cut next month prompted investors to rotate back into riskier regional assets.
Thai shares dipped further after the Constitutional Court removed Paetongtarn Shinawatra from the premiership. Analysts, however, believe the ruling has eased political uncertainties, with Thailand heading towards a new election next year.
The SET index moved in a range of 1,236.61 and 1,268.13 points this week, before closing on Friday at 1,236.61, down 1.3% from the previous week, with daily turnover averaging 48.96 billion baht.
Retail investors were net buyers of 7.18 billion baht, followed by institutional investors at 2.46 billion. Foreign investors were net sellers of 8.44 billion baht, followed by brokerage firms at 1.2 billion.
NEWSMAKERS: US President Donald Trump claimed he would soon have a “majority” of his own nominees on the Federal Reserve board of governors who will back his desire to slash interest rates.
Fed governor Lisa Cook has sought a court injunction to stop Trump from firing her pending a ruling on whether he can legally do so. The firing, part of Trump’s push to exert control over the central bank, would be the first in the Fed’s 111-year history.
Fed governor Christopher Waller said he now supports a series of interest-rate cuts beginning in September, with subsequent moves to be driven by the incoming data.
Trump warned that he might impose tariffs of up to 200% on China if Beijing does not export rare earth magnets to the US. The two countries’ current trade “truce”, which reduced import tariffs to 55% in the US and 32% in China, will expire in mid-November.
The US raised tariffs on India to 50% in multiple categories including gems, textiles, seafood and automotive parts, as Delhi continues to buy Russian oil. While smartphones, pharmaceuticals and energy equipment were not affected, Barclays estimated 70% ($55 billion) of India’s exports to the US are under serious threat.
The European Union has formally proposed to remove tariffs on American industrial goods, fulfilling a key element of the US-EU framework trade pact and ensuring that lower automobile tariffs will be retroactive to the beginning of August.
US economic growth was stronger than estimated in the Q2, growing 3.3% year-on-year, revised figures showed, spurred by investment and consumer spending.
The Trump administration is considering taking stakes in defence contractors, including Lockheed Martin, Commerce Secretary Howard Lutnick said. Last week the White House announced a plan to take a 10% stake in Nvidia, equal to the amount in government grants the chipmaker has received.
Nvidia, the world’s most valuable company, signalled sales growth is decelerating after a two-year boom in AI spending. It said sales rose 56% to $46.74 billion in the quarter that ended on July 31, and are expected to reach $54 billion in the current quarter. Still, analysts are maintaining their 12-month price targets for the company.
China’s chipmakers are seeking to triple the country’s output of artificial intelligence chips in 2026, rushing to reduce dependence on Nvidia, the Financial Times reported.
The US consumer confidence index for August fell 1.3 points to 97.4. Durable goods orders decreased 2.8%, better than the market expectation of 3.8%, and compared to a contraction of 9.3% in June.
Chery Automobile Co is planning a Hong Kong IPO that may raise about $1.5 billion as early as next month, according to people familiar with the matter.
Shares in heavily indebted China Evergrande Group were taken off the Hong Kong Stock Exchange on Monday, capping a grim reversal of fortune for the once-booming property developer.
Industrial profits in China fell in July by 1.5% and by 1.7% for the first seven months, signalling domestic demand weakness.
South Korea will issue a record 232 trillion won ($167 billion) of bonds in 2026 to finance President Lee Jae Myung’s expansionary fiscal agenda, with government spending set to rise 8.1%.
Nippon Steel plans to increase profit at US Steel through an $11-billion investment through 2028, vice-chairman Takahiro Mori said, adding that the Japanese firm is moving closer to its long-term goal of reaching 100 million tonnes of annual capacity after its $14.9-billion acquisition of the US firm.
The Philippine central bank cut its policy interest rate by 25 basis points to 5% on Thursday after data showed inflation fell to 0.9% in July, the lowest in almost six years.
Vietnam’s rice export prices hit an 8-month high of $460 per tonne as supplies tightened. Indian prices held steady and Thai prices fell due to surplus stocks.
Indonesia’s chief trade negotiator said the US has agreed in principle to waive the 19% tariff on cocoa, palm oil and rubber, currently under final negotiations.
The new mini Labubus unveiled by the Chinese toymaker Pop Mart International sold out almost instantly at home and major overseas markets, in evidence of the enduring demand for the rabbit-eared plush dolls.
The Constitutional Court removed Prime Minister Paetongtarn Shinawatra from office after finding her guilty of an ethics violation arising from her telephone conversation with former Cambodian prime minister Hun Sen.
In the coming days, a new prime minister must be chosen from among the following who remain eligible after being listed prior to the 2023 election: (Chaikasem Nitisiri, Pheu Thai), Anutin Charnvirakul (Bhumjaithai), Pirapan Salirathavibhaga (United Thai Nation), Gen Prayut Chan-o-cha (United Thai Nation), Jurin Laksanawisit (Democrat).
The cabinet approved a 2-billion-baht budget to host the Tomorrowland music festival for five years through 2031, aiming to boost tourism and the economy.
The Bank of Thailand expects economic growth to fall below its potential next year, weighed down by several sluggish sectors, according to the minutes of the most recent Monetary Policy Committee.
Exports surged 11% year-on-year in July, marking a 13th consecutive month of growth, the Ministry of Commerce said. Overseas shipments reached $28.5 billion while imports rose by 5.1% to $28.2 billion.
Shares of Dusit Thani Plc jumped by as much as 22% early Thursday on speculation that Central Pattana Plc (CPN) was interested in a takeover of the hotel group. CPN has denied any such interest. But Chanin Donavanik, acting chairman of the Dusit board, has accused his sisters of backing a takeover.
Thai Airways International may delay its flight and route expansion plans because it has been unable to acquire enough additional passenger jets. Chief executive Chai Eamsiri said the airline is relying on leased aircraft as a bridge before the delivery of purchased planes begin in 2027.
Line Man Wongnai announced the acquisition of JERA Cloud, a Thai cloud and point of sale solutions specialist for beauty and wellness businesses, marking its first expansion beyond restaurants.
The National Broadcasting and Telecommunications Commission (NBTC) disagrees in principle with a US demand that Thailand should fully open up the local telecom market to foreigners, as part of the two countries’ trade agreement.
The Thai automotive industry remained sluggish with production falling 11% in July to 110,616 units. In the first seven months of 2025, output fell 5.7% to 835,331 units. Exports fell 13.3% to 72,439 units while domestic sales rose 5.8% to 49,102 units, led by affordable electric vehicles, said the Federation of Thai Industries.
The manufacturing production index in July dropped 4%, the first contraction in four months, to its lowest level in nearly two years, due mainly to falling car production.
Foreign tourist arrivals in the week to Aug 24 totalled 562,870, down 8.2% from the week before, with slowdowns across all groups, particularly India, Japan and South Korea, following their long holidays and the end of summer holidays. Cumulative arrivals this year were 213.7 million, down 7.1%.
Nationwide residential property transfers contracted by 10.7% in the first half, while new housing project launches in Bangkok and vicinity in the second quarter were the lowest since the data began, the Real Estate Information Center (REIC) said.
COMING UP: On Monday, the euro zone updates unemployment data and the UK announces the manufacturing purchasing managers’ index (PMI). Tuesday brings euro zone inflation, US manufacturing PMI and Chinese services PMI. On Thursday, the US releases non-manufacturing PMI, followed on Friday by August non-farm payrolls and unemployment. Locally, Krungsri Asset Management holds a seminar on the global fixed income market on Thursday.
STOCKS TO WATCH: Asia Plus Securities recommends ways to navigate domestic political risk by focusing on stocks with strong individual fundamentals. These include oil-related stocks such as PTTEP, TOP and BCP; companies that benefit from a stronger baht such as GULF, GPSC and BGRIM; and interest rate down-cycle plays such as SAWAD and TIDLOR.
Daol Securities maintains a positive outlook on the banking sector following stronger-than-expected first-half dividend payouts, particularly from KKP and KBANK. It says valuations remain attractive, with the sector trading at only 0.65 times price-to-book value (PBV), while offering a dividend yield around 7%, compared with the market average of 3%. Top picks are KTB and SCB.
TECHNICAL VIEW: DBS Vickers Securities sees support at 1,210 points and resistance at 1,270. InnovestX Securities sees support at 1,215 and resistance at 1,275.
Source – Bangkok News
