Thailand’s SET Index closed at 1,219.62 points, increased 27.87 points or 2.34% with a trading value of THB 45.12 billion. The analyst stated that the Thai market soared higher than expected after Japan and the Philippines struck deals with the U.S., bolstering Asia’s stock markets.
The SET Index, in particular, rose to only second to the Japanese markets, as investors are hoping for the kingdom to potentially reduce the tariff to around 18-20%. Should the negotiation go as planned, the Thai market may experience some “Sell on Fact” activities, while the overall sentiment remains positive.
The analyst recommends investors closely monitor the potentially imminent conclusion of the U.S.-Thai trade talks, as well as Thai export figures.
U.S. President Donald Trump announced that the United States has reached a sweeping trade agreement with Japan, calling it a “massive” deal with one of America’s leading trade partners.
The agreement will see Japan commit $550 billion in investments to the U.S., while also agreeing to a 15% reciprocal tariff. Trump also noted that Japan would further open its market to U.S. exports.
Trump also announced a preliminary trade agreement with Philippine President Ferdinand Marcos Jr. after their meeting at the White House.
Under the arrangement, the United States will slightly decrease its tariff on Philippine products, while American goods sold in the country would not be subject to import taxes.
Meanwhile, other U.S. trading partners are making concerted efforts to reach agreements with the Trump’s administration as the August trade deadline rapidly approaches.
As reported by Mainichi Newspaper, following the House of Councillors election in Japan, Prime Minister Shigeru Ishiba has announced that he will resign from the position by the end of next month, despite previously stating that he planned to stay in power.
