TRADE DEAL OPTIMISM LIFTS ASIAN SHARES

RECAP: Most Asian stock markets rose yesterday, and a gauge of global equities reached another record high, on trade-deal optimism and increased expectations for US interest-rate cuts this year.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Although the global backdrop looks positive, the Thai index dropped more than 2% to move below 1,100 points again as a high degree of local political uncertainty pressured the market.

The SET index moved in a range of 1,053.79 and 1,117.64 points this week, before closing yesterday at 1,082.42, up 1.4% from the previous week, with daily turnover averaging 43.07 billion baht.

Foreign investors were net buyers of 4.57 billion baht, followed by institutional investors at 2.44 billion and brokerage firms at 1.17 billion. Retail investors were net sellers of 8.18 billion baht.

NEWSMAKERS:

US Federal Reserve chairman Jerome Powell said the Fed is not in a rush to cut interest rates as it is waiting for more clarity on the impact of tariffs on inflation.

■ The dollar declined amid rising concerns about the independence of the Fed. The Wall Street Journal reported that President Donald Trump has considered announcing a replacement for Mr Powell in September, aiming to undermine his position for the rest of a term that expires in May 2026. The White House denied the report.

■ President Trump said the US would hold a meeting with Iran next week but cast doubt on the need for a diplomatic agreement on the country’s nuclear programme.

■ Fed governor Michelle Bowman said she would favour an interest rate cut at the next policy meeting in July so long as inflation pressures stay muted.

■ US Commerce Secretary Howard Lutnick said the US and China have finalised a trade framework, which was “signed and sealed” two days ago. The US is likely to ease trade restrictions on China, especially in the tech sector, while Beijing will relax rules of rare earth exports.

■ Oil prices pared some of the large declines they posted after the Israel-Iran ceasefire, with the market's focus shifting from the Mideast to US trade negotiations. Brent edged higher near $68 a barrel, still down more than 11% for the week.