RISK APPETITE SAPPED BY TRADE WAR WORRIES

RECAP: Stocks in Asian emerging markets slipped yesterday as anxiety over tariff uncertainty and the broader fallout from an escalating US-China trade war prompted a pullback from riskier assets. But there was relief for regional currencies as the US dollar fell below 100 against a basket of major units for the first time since July 2023.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

The SET index moved ina range of 1,056.41 and 1,146.86 points this week, before closing yesterday at 1,128.66, up 0.3% from the previous week, with daily turnover averaging 45.33 billion baht.

Retail investors were net buyers of 3.54 billion baht. Institutional investors were net sellers of 3.71 billion baht, followed by brokerage firms at 1.27 billion and foreign investors at 1.11 billion.

NEWSMAKERS: Now that US President Donald Trump has given dozens of countries including Thailand a 90-day reprieve from stiff reciprocal tariffs, attention is focused on a two-superpower trade war. As of yesterday — and figures can change by the day — Chinese imports to the US faced a tariff of 145% and US imports to China were taxed at 84%.

US Treasury Secretary Scott Bessent said that since Trump announced tariffs, nearly 70 countries have contacted the US about trade negotiations, which may take several months.

Gold prices breached $3,200 an ounce for the first time on Friday, fuelled by a weaker dollar and an escalating trade war that sent investors rushing towards safe-haven assets. Thai selling prices were quoted at 51,100 baht per baht-weight (15.2 grammes).

US consumer prices rose 2.4% year-on-year, slowing from February and below market expectations, bolstering the case for interest rate cuts by the Federal Reserve this year. But minutes from the Fed's March 18-19 meeting showed members indicating they might hold rates steady at 4.25-4.50% in May if inflation remains high.

The People’s Bank of China has asked state banks to delay dollar purchases and to increase scrutiny of customers’ dollar purchase orders to prevent speculation and volatility of the yuan after it weakened due to trade war concerns.

China remains in a deflationary state, with March consumer prices falling 0.1% year-on-year, though that was an improve-ment from a drop of 0.7% in February.