SHARES RALLY AS TRUMP DELAYS IRAN DECISION

RECAP: Asian equities staged a relief rally and the dollar declined after the White House said President Donald Trump would decide within two weeks whether Washington will join Israel in launching strikes against Iran.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Thai shares also rallied but were down sharply on the week amid investor anxiety about the future of the Paetongtarn Shinawatra government after the embarrassing leak of a phone call between the premier and Hun Sen of Cambodia.

The SET index moved in a range of 1,066.02 and 1,123.83 points this week, before closing yesterday at 1,067.63, down 4.9% from the previous week, with daily turnover averaging 43.71 billion baht.

Retail investors were net buyers of 14.11 billion baht, followed by brokerage firms at 89.85 million. Institutional investors were net sellers of 8.23 billion baht, followed by foreign investors at 5.97 billion.

NEWSMAKERS:

The US Federal Reserve maintained its interest rate at 4.25% to 4.50%, in line with market expectations. Its latest "dot plot" projections are for two 25-basis-point rate cuts in 2025, one cut in 2026 and one cut in 2027, to a range of 3.25% to 3.5%.

■ The Fed lowered its US GDP growth forecast to 1.4% this year from 1.7%, and to 1.6% from 1.8% next year. As well, Fed chairman Jerome Powell said he expected to see "meaningful" signs of inflation soon, reflecting the impact of tariffs.

■ The Bank of Japan kept interest rates unchanged at 0.5% and said it would taper its purchase of government bonds to a slower pace, as trade uncertainty weighs on the economy. Japanese core inflation accelerated to a fresh two-year high of 3.7% in May.

■ Japan's exports fell for the first time in eight months in May, losing 1.7% year-on-year, led by cars, steel and mineral fuel, as US tariff plans weighed on global trade.

■ The Bank of England held interest rates at 4.25% as policymakers weighed a softening jobs market and weak growth against a backdrop of mounting geopolitical tensions.

■ UK retail sales plummeted 2.7% in May, the first drop this year, in a sharp reversal that suggests the economy could be struggling.