AI BUBBLE FEARS, US RATE OUTLOOK SUBDUE BOURSES

RECAP: Most Asian equities declined yesterday at the end of a volatile week, amid mixed signals from the US Federal Reserve about the interest rate outlook, while tech-heavy markets fell on worries about stretched AI company valuations.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

The SET index moved in a range of 1,283.13 and 1,317.48 points this week, before closing yesterday at 1,302.91, down 0.5% from the previous week, with daily turnover averaging 33.54 billion baht.

Retail investors were net buyers of 2.85 billion baht, followed by foreign investors at 1.45 billion. Institutional investors were net sellers of 2.72 billion baht, followed by brokerage firms at 1.59 billion.

NEWSMAKERS: China’s exports unexpectedly fell 1.1% year-on-year in October, marking the first drop in since February. The decline came after months of frontloading US orders to beat tariffs, in a stark reminder of the country’s reliance on American consumers even as it woos buyers elsewhere.

= Thousands of domestic flights are being cancelled across the US as the government orders a 10% reduction of flights at 40 major airports on safety grounds. Thousands of air traffic controllers have been working without pay since Oct 1 because of the longest government shutdown in history. Many are reporting stress or calling in sick, worsening the problem.

= President Trump announced a cut in the “fentanyl tariff” on Chinese imports to 10% from 20%, bringing down the overall tariff rate for many goods to 47%, effective Nov 10. Washington says China has been making progress in curbing the flow of fentanyl and chemical precursors into the US.

=China has suspended an additional 24% tariff on US goods for one year, also from Nov 10, but will maintain a 10% tariff rate, and has cancelled tariffs on certain US agricultural products, previously at up to 15%.

= Trump has banned sales of Nvidia's Blackwell advanced Al chip to countries outside the US, including China, but may allow exports of a scaled-down version, reflecting strict Al technology controls.