Finance Minister Arkhom Termpittayapaisith insists that the latest troubles faced by some major banks within the United States have had no impression on Thailand thus far. Before added that the federal government is prepared to take action in case of any potential volatility that may come up from global markets.
The feedback had been made in response to the current collapse of Silicon Valley Bank (SVB), which triggered considerations about contagion effects on Asian stock markets.
Despite the initial panic, the Stock Exchange of Thailand‘s (SET) major index rebounded by 2.49% to close at 1,561.97 on Wednesday morning. On Tuesday, the index had closed at 1,523.99, down by three.13%, in commerce worth 103.8 billion baht, reported Bangkok Post.
The SET reassured buyers that the sell-off was an overreaction to the scenario, and the market responded positively yesterday as fears of a broader fallout from the collapse of SVB eased.
Asian banking shares also noticed features on Wednesday, with the MSCI Asia Pacific Financials Index advancing by up to 2%, following three days of losses triggered by the SVB, and Signature Bank collapses. The Topix Banks Index in Japan surged by as a lot as four.6%, partly reversing its 16% drop over the previous three sessions. Separate gauges of financials in South Korea, Australia, and Hong Kong additionally noticed gains.
The fears about the well being of the US financial system and its potential impression on the global financial system have gradually subsided, with expectations that the worst of the fallout could have handed. The mixture market value of firms included within the MSCI World Financials Index and the MSCI EM Financials Index had dropped by more than US$450 billion over the previous three sessions..