Asian equities declined on Friday after a rally in US stocks stalled amid concern that valuations have become stretched, especially for technology companies, following a relentless surge.
The Thai market was dragged down by a plunge in shares of Delta Electronics, the bourse’s most valuable stock, after regulators imposed market surveillance measures following a record-breaking rally.
The SET index moved in a range of 1,282.47 and 1,317.88 points this week, before closing on Friday at 1,286.98, down 0.5% from the previous week, with daily turnover averaging 37.42 billion baht.
NEWSMAKERS: Global financial markets could tumble if investors’ mood sours on the prospects for AI or the independence of the US Federal Reserve, the Bank of England has warned. It said share valuations on US stock markets were similar to those seen near the peak of the dotcom bubble in 2000.
Gold raced past $4,000 an ounce on Wednesday as investors piled into the safe-haven asset to hedge against economic and geopolitical uncertainties, while also betting on US interest rate cuts. Spot gold slipped back on Friday to around $3,970.
US President Donald Trump said he is considering using tariff revenue to provide rebates to American citizens of $1,000 to $2,000 per person, with a portion applied to the government’s $38-trillion debt. The US Treasury estimates such revenue at $500 billion annually.
China has slapped new port fees on US ships and started an antitrust investigation into the chipmaker Qualcomm, the latest in a string of tit-for-tat moves as Presidents Xi Jinping and Donald Trump jockey for leverage before a key meeting to discuss trade and other issues.
Orsted, the Danish renewable energy developer, said it would cut about 2,000 jobs, or around 25% of its workforce. The move was the latest sign of the diminished prospects for offshore wind, a low-emissions technology that Orsted helped pioneer.
Advanced Micro Devices has reached a long-term AI chip supply agreement with the ChatGPT OpenAI worth several billion dollars, and offered warrants with rights to convert into 160 million shares or a 10% stake, driving AMD shares up as much as 38%.
Taiwan Semiconductor Manufacturing Company (TSMC) said third-quarter revenue rose 30% year-on-year to $32.5 billion, exceeding expectations, driven by continued AI momentum offsetting weak consumer electronics chip demand.
SoftBank Group is reportedly in talks to borrow $5 billion from global banks, refilling its coffers at a time when chairman Masayoshi Son is accelerating the Japanese investment firm’s bets on AI
Years of capital reforms by Vietnam have helped it win an upgrade from FTSE Russell. The market index producer has lifted Vietnam’s stock exchange from frontier market to emerging market. The shift is expected to open the door to capital inflows, particularly from passive funds.
The Philippine central bank cut its key policy rate by 25 basis points to 4.75% on Thursday, against market expectations, saying the outlook for growth has weakened and inflation expectations are well anchored.
The SET said investors must pay the full amount of cash prior to trading shares of Delta Electronics, the bourse’s most valuable company and a perennial target of speculators. Data over the past five years shows DELTA has been put on the cash-balance list seven times, with opening prices on the first day down an average of 9.5% from the previous day. They closed down 9.1% on Friday.
The Ministry of Finance is planning more adjustments to personal income tax deduction criteria, planning to set a “combined ceiling” for annual tax deductions, and considering a SET proposal to consolidate tax-deductible investment products into a single system. More clarity is expected in November.
The SEC is preparing to adjust criteria for ThaiESG and ThaiESGX funds to invest in real estate investment trusts (REITs) and infrastructure funds. Official publication in the Royal Gazette is expected shortly.
The Bank of Thailand left its key interest rate unchanged at 1.50% on Wednesday, counter to market expectations for a cut, as the economy struggles with a strengthening baht, negative inflation and the impact of US tariffs.
Commerce Minister Suphajee Suthumpun has outlined short-term stimulus, long-term growth and distributed-impact programmes, with four deemed urgent: improving farmers’ incomes and managing rice stocks, expanding markets through free trade agreements, reducing the cost of living, and promoting border trade.
The Energy Regulatory Commission said it expected to freeze electricity tariffs for the January-April 2026 period at 3.94 baht per unit, as fuel costs are not rising as sharply as in previous years, potentially eliminating the need to subsidise rates.
The cabinet approved a budget of 44 billion baht for the “Half-Half Plus” co-payment stimulus, which lowers the minimum age for participants to 16, increases spending limits for taxpayers and opens the programme to SME operators. Registration will run from Oct 20-26, with the programme running from Oct 29 to Dec 31.
The World Bank raised Thailand’s 2025 GDP forecast to 2.0% from 1.6% but expects a slowdown to 1.8% in 2026 due to political uncertainty and weak economic momentum, with Thailand’s per capita income recovering slower than the region.
The University of the Thai Chamber of Commerce (UTCC) raised its 2025 GDP growth forecast to 2.0% from 1.7%, citing better than expected exports and private investment and a stronger recovery in consumption, led by economic stimulus. However, it said slowing tourism remains a concern.
The Consumer Confidence Index rose in September for the first time in eight months to 50.7, driven by greater political clarity, a stock market and export recovery, lower oil prices and hopes for consumption stimulus, said the UTCC.
The Ministry of Energy is promoting “quick big win” policies to generate income and reduce expenses, such as the 1,500MW Community Solar Farm programme, which will be open for private investment.
Foreign tourist arrivals last week rose 16% from the previous week, with the year-on-year decline continuing to narrow, driven by a 67% weekly jump in Chinese tourists during Golden Week. Total foreign arrivals so far this year are 24.57 million, down 7.5% year-on-year.
The Ministry of Finance is planning three tourism stimulus measures: tax deductions for secondary city tourism, accelerating spending of budgets for state agency seminars that will put 10 billion baht into the system, and tax deductions for hotel renovation expenses at 1.5 to 2 times the cost.
Thailand saw inflation dip below zero for the sixth straight month. The consumer price index fell 0.7% in September from a year ago, reflecting lower energy and raw food prices. The Bank of Thailand has reduced its 2025 inflation forecast to zero, with a decline to an average of 0.5% in 2026.
The Oil Fuel Fund Office has reduced the Oil Fund levy for diesel and gasoline by 0.50 baht a litre to lower retail prices, aligning with its attempts to reduce the cost of living. The move is seen as positive for oil retailers amid signs of a marketing margin recovery and seasonally rising consumption.
COMING UP: On Monday, the annual International Monetary Fund-World Bank meetings open in Washington. Also due are a monthly oil market report from Opec and Chinese trade data for September. Tuesday brings UK unemployment, Chinese and German inflation updates. On Wednesday, the US will release core CPI and crude oil stock reports.
On Thursday, the UK will release a GDP update and the US will report September retail sales, the Philadelphia Fed Manufacturing Index and producer price index (PPI). On Friday, the euro zone will release September inflation data and the US will update its import and export price index.
STOCKS TO WATCH: Asia Plus Securities sees BTS and BEM as key beneficiaries of the government’s new co-payment scheme, with indirect gains expected for retail, food and beverage, beauty and tourism sectors. Potential winners include CPALL, BJC, CPAXT, OSP, CBG, SPA, KISS, CENTEL, MINT and AOT.
At the same time, transport ministry policies — to speed up budget disbursement, advance the Southern Economic Corridor Bill, and push major infrastructure projects such as the Land Bridge, common ticketing system and improved traffic management — are expected to benefit industrial estates (AMATA, WHA), construction (CK, STEC, UNIQ), logistics (PSL, TTA, WICE), and EV bus producers (EA, NEX).
InnovestX Securities noted that the US government shutdown may last longer than expected, weighing on economic growth. Domestically, the banking sector faces pressure as third-quarter earnings are projected to decline on both a quarterly and annual basis, which could trigger selling in the group. Its top picks are BCP, CPALL and GPSC.
TECHNICAL VIEW: InnovestX Securities sees support at 1,260 points and resistance at 1,320. Asia Plus Securities sees support at 1,270 and resistance at 1,313.