Thailand’s SET Index closed at 1,372.49 points, decreased 8.55 points or 0.62% with a trading value of 41.06 billion baht. The analyst stated that the Thai stock market declined to conform with the foreign markets, as the Dow Jones decreased after the divestment of speculated stocks following the details on rate cuts from the US Federal Reserve. The strengthened US dollar made the Asian currencies unattractive and caused the Asian markets to contract. Meanwhile, the statement on the digital wallet scheme did not bring anything new to the table and was even more delayed until 4Q24.
The analyst expected the market to trade sideways tomorrow, while investors awaited the announcement of GDP and PCE figures from the US.
Last year, the total value of private equity deals in the Asia Pacific region reached its lowest point since 2014, due to a decrease in fundraising amidst factors like slowing growth, high interest rates, and volatile public markets, as per management consultancy Bain & Company.
Japan, though, stood out from APAC countries by having a 183% increase in deal value in 2023 compared to the previous year, establishing itself as the leading private equity market in Asia Pacific for the first time. According to Bain’s 2024 Asia-Pacific Private Equity Report, Japan’s attractiveness as an investment destination stems from its abundant target companies with potential for performance enhancement and the pressure on Japanese corporations to divest non-core assets through corporate governance reform.
Japan, India, and Southeast Asia are singled out as favorable markets for private equity investments in the next 12 months, according to Bain’s report based on Preqin’s 2023 investor survey.
Goldman Sachs stated that global economies experience a speed bump in inflation, but that does not derail rate cuts from central banks.
In a note, Goldman Sachs stated that Core inflation in the US has risen recently, with core PCE inflation estimated at 0.29% in February, compared to an average of 0.13% in Q4. However, despite some increases, the overall view is that inflation will stabilize, especially in the US, Canada, and Japan, while it rose to 3.4% in the Euro area and 4.4% in the UK.
Goldman Sachs remains confident in a soft economic landing, supported by resilient US growth data, ongoing labor market adjustments, and a slowdown in wage growth. The global investment bank forecasts a continued decrease in inflation and expects the Fed, ECB, BOE, and BoC to commence rate cuts in June. With signs of economic weakness in Europe, it is anticipated that the ECB and BOE will implement faster rate cuts compared to the Fed.
Goldman Sachs noted that recent central bank meetings indicate an imminent move towards rate cuts, with the Fed projecting three rate cuts in 2024, the BoE maintaining a dovish stance, and the SNB surprising by delivering its first rate cut, citing lower inflationary pressures.
