Asian Markets Positioned To Rise on Global Optimism, Thai Equities Face Upside Potential

The Stock Exchange of Thailand is positioned for gains as regional investors prepare for a positive trading session following encouraging signals from major global markets. This momentum comes after the Thai market ended a two-day winning streak on Friday, declining 27.41 points or 2.14 percent to close at 1,254.40.

Global Market Backdrop Supports Asian Recovery

Wall Street’s Friday performance provided the catalyst for the anticipated upside momentum. The major U.S. indices delivered solid gains, with the Dow Jones Industrial Average advancing 493.15 points or 1.08 percent to 46,245.41, while the NASDAQ climbed 195.03 points or 0.88 percent to reach 22,273.08, and the S&P 500 extended its gains by 64.23 points or 0.98 percent to finish at 6,602.99. These advances were fueled by renewed expectations that the Federal Reserve may reduce interest rates at its December monetary policy meeting, bolstered by dovish commentary from New York Federal Reserve President John Williams.

Supporting this rate-cut optimism, the University of Michigan reported declines in both near-term and long-term inflation expectations for November, suggesting a more favorable economic environment ahead.

Thai Market Weakness Creates Bargain Opportunities

Friday’s pullback across the Thai market reflected weakness in multiple sectors. Consumer discretionary, financial, industrial, property, services, and technology stocks all posted losses. Trading volume reached 7.194 billion shares valued at 36.090 billion baht, with prices fluctuating between 1,248.89 and 1,272.31 throughout the session.

Major names experienced varying degrees of pressure: Bangkok Airport dropped 2.96 percent, Asset World declined 4.50 percent, BTS Group fell 3.10 percent, and PTT Global Chemical retreated 4.50 percent. Energy stocks also participated in the selloff, with PTT Oil & Retail losing 3.01 percent and Thai Oil down 2.72 percent. Meanwhile, select issues bucked the trend—Charoen Pokphand Foods added 0.94 percent, and TTB Bank climbed 1.05 percent.

Interest Rate Expectations Drive Sentiment

The improved outlook for monetary policy is expected to provide lift for the Thai market as bargain hunters re-enter positions. With interest rates potentially easing in the near term, investors may seek dividend-yielding and value-oriented equities in the Asian region.

Commodity prices reflected broader economic sentiment as well. West Texas Intermediate crude declined $0.86 or 1.46 percent to $58.14 per barrel, pressured by oversupply concerns following Ukraine’s endorsement of a U.S. peace initiative regarding the Russia-Ukraine conflict.

As Monday’s session approaches, the SET appears positioned to benefit from the constructive tone emanating from Wall Street and renewed confidence in the economic path ahead.