BANGKOK—After a week of turbulence, Asian equities have finally steadied, with markets posting modest gains in response to more favorable investor sentiment. The regional recovery was led by Thailand’s stock market, which recorded its best week of 2024. The Stock Exchange of Thailand (SET) climbed by 5%, reaching 1,427.64 points, bolstered by strong foreign and institutional buying, especially in energy and banking stocks.

Daily turnover on the SET averaged 78.23 billion baht, with institutional investors contributing significantly, buying 5.91 billion baht in shares, while retail investors were net sellers. The shift in market sentiment comes as investors anticipate interest rate cuts by the U.S. Federal Reserve, boosting optimism across the region’s markets.

Moreover, the rally in oil prices contributed to the gains in energy stocks, a key sector in the Thai market. Analysts are optimistic that the combination of foreign investment and favorable monetary policies will continue to drive growth in the Thai market in the coming weeks.

On the global stage, softer-than-expected U.S. labor market data has fueled speculation that the Federal Reserve may cut interest rates soon, further boosting market sentiment. Other significant developments include a 10% drop in Nvidia shares due to concerns over the AI sector’s valuation, and OPEC’s decision to pause output increases, which sent oil prices surging.

Locally, the Ministry of Finance’s plans to launch a 150 billion baht Vayupak Fund in September are expected to inject even more liquidity into the Thai stock market, further stabilizing it after months of volatility. This move is part of the government’s broader strategy to boost economic recovery through increased state spending and investor confidence​