# Market Roundup 27 September 2024

- Link: https://www.thailand-business-news.com/markets/165489-market-roundup-27-september-2024
- Published: 2024-09-28T10:40:02+07:00
- Author: Abhishek Prakash

**Thailand’s SET Index dropped 0.34% to 1,450.15 points as investors awaited US 
economic data. China reduced the reserve requirement ratio to boost growth. Japan’s
LDP elected Shigeru Ishiba as its new leader.**

## Thai Stock Market Decline

Thailand’s SET Index closed at 1,450.15 points, a decrease of 4.88 points or 0.34%,
with a trading volume of 60.56 billion baht. Analysts noted a brief pause after 
the index climbed approximately 200 points from this year’s low, as investors awaited
the US August PCE figures. The market is expected to remain within a range next 
week, with investors focusing on US nonfarm payrolls.

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## Economic Measures in China and Japan’s Political Transition

China’s central bank announced a second RRR reduction by 50 basis points this year,
aimed at bolstering economic growth amidst deflationary challenges. This applies
to all banks except those with a 5% reserve ratio. Major cities like Shanghai and
Shenzhen are easing home purchase restrictions to attract buyers. Meanwhile, Shigeru
Ishiba won the race to lead Japan’s ruling LDP, positioning him to succeed Prime
Minister Fumio Kishida.

### China’s Stimulus

In the face of economic headwinds, China has recently unveiled a comprehensive stimulus
package aimed at rejuvenating its economy. The People’s Bank of China (PBOC) has
taken bold steps to lower borrowing costs and increase lending, a move that is expected
to inject approximately 1 trillion yuan into the economy. This stimulus comes at
a crucial time as China seeks to meet its growth targets amidst a series of disappointing
economic data.

The measures include a reduction in the reserve requirement ratios (RRR) for banks,
potentially followed by further cuts later in the year. Additionally, efforts to
revive the property market are underway, with reduced interest rates for existing
mortgages and lowered minimum down payments for homes. These actions reflect a proactive
approach to counter the economic slowdown and mirror similar efforts by other global
economies, such as the recent interest rate cut by the US Federal Reserve.

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### Japan’s Democratic Resilience

On the political front, Japan is undergoing a period of introspection and renewal.
Despite the dominance of the Liberal Democratic Party (LDP) since the 1950s, Japan’s
democracy remains robust, characterized by strong institutions, regular elections,
and a free press. The recent smooth transition of power from Emperor Akihito to 
Emperor Naruhito in 2019 exemplifies the nation’s stable democratic practices. However,
concerns over voter apathy and the weakening of opposition parties signal challenges
to the vibrancy of Japan’s democratic system.

Japan’s political stability has been a cornerstone of its success, yet the need 
for democratic dynamism is evident. The country continues to play a pivotal role
in promoting liberal internationalism, advocating for the inclusion of democracies
in Asia’s regional architecture, and fostering security cooperation with like-minded
nations.

As both nations navigate their respective economic and political landscapes, the
international community watches closely. China’s economic measures and Japan’s political
resilience will undoubtedly have far-reaching implications, not only for their domestic
affairs but also for the broader geopolitical dynamics of the region. The outcomes
of these initiatives will be a testament to the adaptability and foresight of these
two influential Asian powers.