1) Thai stock market overview
Thailand’s SET Index closed at 1,620.28 points, decreased 13.08 points or 0.80% with a trading value of 58 billion baht. The analyst stated that the Thai stock market traded lower on Thursday in the same direction as regional markets after the Fed announced a rate hike and projected a longer-period of higher rates than expected. Meanwhile, China also reported a disappointment in industrial production and retail sales data.
2) Foxconn announces the end of its Covid-19 restrictions
Foxconn announced the end of its “point-to-point” system on Wednesday night via its official WeChat account. This measure required workers to limit their daily moves between their dorms and the site.
Due to the negative effects on economic activity and public anger, China is abandoning its long-standing Covid Zero policy. Foxconn’s decision follows the removal of the “high-risk Covid” category from the area around the facility earlier this week.
3) Hong Kong central bank raises interest rate following US Fed’s move
The Hong Kong Monetary Authority (HKMA) boosted its base rate charged through the overnight discount window by 50 basis points to 4.75% on Thursday, just hours after the US Federal Reserve raised rates by the same percentage.
The Federal Reserve of the United States increased interest rates by a half percentage point and forecast at least another 75 basis points in rises in borrowing costs by the end of 2023, along with an increase in unemployment and a near halting of economic growth.
Hong Kong’s monetary policy follows that of the U.S., as the city’s currency is tied to the dollar in a narrow band of 7.75-7.85 per dollar.
4) Swiss central bank raises policy rates by 50bps to 1%
The Swiss National Bank on Thursday raised its benchmark policy rate for the third time of this year, bringing it up to 1%.
The inflation in the country is still well above the Swiss National Bank’s target of 0-2%.Last month, Switzerland’s inflation rate remained steady at 3%, which was a drop from 3.5% in August, a three-decade high.
The central bank’s 50 basis point hike on Thursday came after an unexpected raise for the first time in 15 years in June that took the benchmark up from -0.75% to -0.25%. The policy rate entered a positive territory in September after a 75 bps hike by the Swiss bank.