Thailand’s SET Index broke a crucial resistance level in the afternoon session amid negative sentiment in the market.
As of 15:44 local time in Bangkok, the main index of Thailand’s stock market fell 19.45 points or 1.20% to 1,598.75 points on Tuesday with a trading value of 44 billion baht.
Meanwhile, Nikkei plunged 2.46% after widening its yield target range. Shanghai Composite fell 1.07%, Hang Seng Index dropped 1.33%, ASX 200 slipped 1.54% and Kospi decreased 0.80%.
Earlier this morning, Japan’s central bank opted to widen the band around its yield cap in order to allow longer-term interest rates to climb more, but it kept its yield target unchanged and said it will sharply accelerate bond purchases, indicating that the move was a fine-tuning of its existing ultra-loose monetary policy.
The BOJ will widen the range around the band from its present plus and minus 0.25 percentage points to plus and minus 0.5 percentage points.
The stock market continued to plunge despite an approval from the Thai Cabinet in approving more stimulus packages to boost the economy.
The scheme known as “Shop Dee Mee Kuen” will allow consumers spending on products and services in Thailand to be eligible for tax deduction up to THB 40,000 per person.
The Ministry of Finance estimated that the scheme, which will run from 1 Jan – 15 Feb 2023, will generate more than THB 56,000 million of cash flow in the country, while the Revenue Department would lose THB 8,200 million of tax collection. The scheme is expected to drive Thai gross domestic product in 2023 by 0.1-0.2%.