Tech sell-off takes toll on Asian equities

BANGKOK, 22 JULY 2026 —

RECAP: Most Asian stock markets fell sharply on Friday, with equity benchmarks in Japan and Taiwan falling as much as 6%, as a global rout in technology stocks accelerated. The resumption of US-Iran hostilities and higher oil prices also dented sentiment.

Thai stocks traded sideways on Friday, escaping the broader Asian rout. Analysts say that while sentiment on global tech stocks is fragile, the Thai economic and investment recovery story is still intact.

The SET index moved in a range of 1,606.27 and 1,639.87 points this week, before closing on Friday at 1,639.04, up 1.1% from the previous week, with daily turnover averaging 85.82 billion baht.

Foreign investors were net buyers of 8.52 billion baht, followed by brokerage firms at 2.08 billion. Retail investors were net sellers of 6.11 billion baht, followed by institutional investors at 4.49 billion.

NEWSMAKERS: President Donald Trump said US forces would target key Iranian infrastructure next week if a diplomatic breakthrough is not achieved. Iran warned that it would "crush" key targets in the Mideast if Trump's threats are carried out.

World oil prices remained elevated in response to renewed tensions, with Brent trading around $84.30 a barrel on Friday, and West Texas Intermediate at $79. Both benchmarks have climbed nearly 12% this week.

Gold prices fell below $4,000 an ounce on Thursday, a more than two-week low, as escalating Middle East tensions pushed oil prices and US Treasury yields higher.

The US Department of Energy said it had loaned 8.5 million barrels of crude from the Strategic Petroleum Reserve to four oil companies, in an effort to curb fuel prices that have surged again.

US inflation in June was below expectations, with the headline Consumer Price Index rising 3.5% year-on-year, down from 4.2% in May. Traders responded to the news by exiting bets that the Fed would hike rates at its July 28-29 meeting.

South Korea's central bank hiked interest rates from 2.5% to 2.75%, the first increase in more than three years, and indicated more to come amid growth fuelled by the AI boom and persistent inflation.

The US announced 25% duties on Brazilian furniture, ethanol, machinery, sugar and other ‌goods, launching a new wave of tariffs that could affect dozens of countries.

China's economy in the second quarter expanded by 4.3%, its weakest pace since the fourth quarter of 2022, reinforcing calls for policy stimulus as an accelerating slide in investments deepened the strain on growth.

Chinese exports in June rose 27% year-on-year in dollar terms, the most since October 2021, as the AI boom lifted trade.

The Chinese AI firm DeepSeek plans a fresh fundraising round at a valuation of about ‌500 billion yuan ($74 billion) ahead of a potential mainland initial public offering, Reuters reported.

Taiwan Semiconductor Manufacturing Co announced plans to spend an additional $100 billion on US operations, while reporting second-quarter net profit of $22 billion, up 77.4% year-on-year.

BYD executive vice-president Stella Li said the Chinese automaker aims to surpass Toyota as the world's largest carmaker within five years, even without access to the US market.

Thailand aims to conclude free trade agreement negotiations with the European Union (EU) by the end of this year, although differences over agricultural products and raw materials remain unresolved, Prime Minister Anutin Charnvirakul said on Thursday.

Mr Anutin on Friday attended the World Artificial Intelligence Conference in Shanghai as part of his five-day official visit to China, where he will meet President Xi Jinping.

Customers depositing more than 5 million baht in cash will be required to disclose the source of the funds from the fourth quarter as part of tighter measures to curb the grey economy and illicit financial activities, the Bank of Thailand said.

The Board of Investment said US-based Analog Devices is expanding its investment in Thailand by 19 billion baht, aiming to elevate the country into a global chip design and testing hub.

More than 23 million households will pay 3 baht per unit, compared with the regular rate of 3.95 baht, for their first 200 units of electricity per month from August under reforms aimed at cutting power bills.

Energy regulators are finalising details of a pilot project that will allow businesses to purchase electricity directly from eligible providers, which is expected to support the rapid growth of data centres and cloud service businesses.

The government said 9.5 million people, out of 18.8 million applicants, met the new, stricter criteria to receive the Thai welfare card. The finance ministry plans to offer the Thais Help Thais 60/40 package for those who did not qualify for welfare cards.

The Ministry of Tourism and Sports has proposed tourism stimulus projects worth 2.45 billion baht, aiming at generating 56 billion baht through a domestic travel co-payment scheme, domestic flight discounts and international flight subsidies.

The government will offer 4 billion baht worth of "Aom Plus" (Savings Plus) bonds at the end of this month, designed to encourage more working-age people to save.

One Asset Management, the manager of Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT), has begun legal procedures after Royal Orchid Hotel (Thailand) Plc (ROH) failed to repurchase the 4.87-billion-baht Royal Orchid Sheraton Riverside hotel by the deadline set under a five-year buyback agreement. ROH insists it intends to complete the buyback but must resolve a disagreement over payment terms.

Advanced Info Service has partnered with Bangkok Land to build intelligent digital infrastructure across 4,000 rai of Muang Thong Thani, positioning one of Thailand's largest mixed-use developments as a next-generation smart city.

COMING UP: On Monday, China announces the Loan Prime Rate, Germany reports producer prices and the US releases the Conference Board Leading Economic Index. On Tuesday, the UK announces employment and wage data. On Wednesday, Japan releases trade figures and the UK reports inflation. On Friday, Japan announces core inflation, the UK releases retail sales, Germany reports consumer confidence and the US releases manufacturing PMI and new home sales.

Locally, the SET on Tuesday hosts Sustainability Forum #2/2026, focusing on turning global supply chain volatility into a strategic advantage. On Friday, the Ministry of Commerce will release the latest trade data.

STOCKS TO WATCH: InnovestX Securities says softer-than-expected US inflation could reduce pressure for Fed rate hikes, while continued foreign fund inflows reflect improving confidence in Thai equities. Risks remain from escalating Mideast tensions and global tech stock volatility. Top picks are ERW, PTT and ADVANC.

Yuanta Securities expects new electricity measures to benefit power producers by allowing higher-priced direct sales to data centres, while stricter rules for large data centres are positive for utilities and power infrastructure providers. Top picks are GULF, BGRIM, GPSC, WHAUP, EGCO and RATCH, while WHAUP, EASTW, GUNKUL, DEMCO and SAMART should benefit from water supply and power transmission demand.

TECHNICAL VIEW: Pi Securities sees support at 1,610 points and resistance at 1,650. InnovestX Securities sees support at 1,600 and resistance at 1,665.

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