Major stock markets in Asia traded lower on Friday following Fed’s Jerome Powell statement that a 50bps rate hike could be as early as May.
As of 10:28 local time in Thailand, Nikkei fell 1.89%, SSEC dipped 0.16%, Hang Seng Index dropped 0.89%, ASX 200 decreased 1.63% and IDX Composite slipped 0.45%.
Thailand’s SET Index opened at 1,689.29 points, decreased 1.26 points or 0.07%.
The U.S. Federal Reserve Chair Jerome Powell said yesterday that the central bank is committed to bring down inflation currently at 40-year high, while adding that aggressive rate hikes are possible as soon as next month.
“It is appropriate in my view to be moving a little more quickly,” said Powell. “I would say 50 basis points will be on the table for the May meeting.”
Mr. Kantara Ladawan na Ayutthaya, executive director of Finansia Syrus Securities (FSS), through “Kaohoon Jor Talad Program” on April 22, 2022, stated that negative sentiment over the situation in Ukraine and Fed’s aggressive rate hike overshadowed the positive factor in Thailand, which is the border reopening and the consideration of lifting Covid-19 restrictions for tourist arrivals.
The analyst expected support level for SET Index at 1,680 points and the next support should be at 1,650 points, saying that a decline is an opportunity to accumulate stocks as the outlook for SET Index is positive, seeing more domestic flights, better Covid situation, exports and reopening.
In addition, Mr. Ladawan said that reopening and domestic stocks are still attractive, while the banking sector will benefit from economic recovery and consumption stocks to benefit from the next phase of government’s stimulus package.