ASIAN SHARES DIP AS TRUMP-XI TALKS YIELD LITTLE NEWS

Asian equities edged down yesterday as talks between US President Donald Trump and Chinese President Xi Jinping failed to shed light on the progress of trade negotiations. Weak US economic data also weighed on sentiment.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Thai shares were also pressured by domestic factors, led by political uncertainty, as a cabinet reshuffle is expected shortly, and a key court hearing for ex-PM Thaksin Shinawatra is due next week.

The SET index moved in a range of 1,127.57 and 1,149.68 points this week, before closing yesterday at 1,136.43, down 1.1% from the previous week, with daily turn-over averaging 36.13 billion baht.

Retail investors were net buyers of 2.03 billion baht, followed by brokerage firms at 2.1 million. Institutional investors were net sellers of 1.05 billion baht, followed by foreign investors at 982.78 million.

NEWSMAKERS: President Trump described his 90-minute phone call with Xi Jinping as positive for both sides. The conversation, the first since Trump's inauguration in January, also covered rare earth elements crucial to many industries, he said.

■The Congressional Budget Office estimates Trump's proposed tariff hikes would reduce economic output and raise production costs, pushing inflation up by 0.4% annually in 2025-26. However, it could also shrink the federal deficit by $2.8 trillion over the next decade.

■The messy end of the bromance between Trump and Elon Musk rattled US markets, with Tesla shares plunging 14% as Trump proposed ending Musk's government contracts and subsidies, after his onetime adviser attacked the Republican tax bill.

■The European Central Bank on Thursday cut its key interest rate by 25 basis points to 2% - the lowest since early 2023, in response to slowing inflation and trade-war threats. It also downgraded GDP forecasts to 0.9% for 2025 and 1.1% for 2026.