Finance Minister Arkhom Termpittayapaisith insists that the current troubles faced by some major banks within the United States have had no influence on Thailand so far. Arkhom added that the government is ready to take action in case of any potential volatility that may come up from international markets.
The feedback have been made in response to the latest collapse of Silicon Valley Bank (SVB), which triggered issues about contagion results on Asian stock markets.
Despite the initial panic, the Stock Exchange of Thailand‘s (SET) main index rebounded by 2.49% to shut at 1,561.97 on Wednesday morning. On Tuesday, the index had closed at 1,523.ninety nine, down by three.13%, in trade price 103.8 billion baht, reported Bangkok Post.
Eye-opening reassured investors that the sell-off was an overreaction to the situation, and the market responded positively yesterday as fears of a broader fallout from the collapse of SVB eased.
Asian banking shares additionally saw features on Wednesday, with the MSCI Asia Pacific Financials Index advancing by as a lot as 2%, following three days of losses triggered by the SVB, and Signature Bank collapses. The Topix Banks Index in Japan surged by as much as 4.6%, partly reversing its 16% drop over the previous three sessions. Separate gauges of financials in South Korea, Australia, and Hong Kong also saw positive aspects.
The fears about the well being of the US monetary system and its potential influence on the global economic system have progressively subsided, with expectations that the worst of the fallout might have handed. The aggregate market value of corporations included within the MSCI World Financials Index and the MSCI EM Financials Index had dropped by greater than US$450 billion over the past three sessions..