BENGALURU: Thai stocks headed for their steepest decline since late June on Friday, hammered by a sharp sell-off in Delta Electronics, while shares in other emerging Asia markets softened as investors locked in profits after an artificial intelligence-driven rally.
Bangkok’s benchmark index slumped as much as 2.3 percent, on track for its worst session since June 27.
The drop was largely driven by Delta Electronics, which plunged after the exchange placed the stock under surveillance following a 22 percent surge this month, spurred by its perceived position as a key AI beneficiary.
The MSCI index of emerging Asian equities slipped 0.4 percent, paring gains from the previous session. The MSCI Asia-Pacific ex-Japan index dipped 0.3 percent.
Markets in Malaysia and Indonesia fell 0.3 percent and 0.1 percent, respectively, while the Philippines edged 0.3 percent lower.
On the other hand, currency markets were choppy against the US dollar, which was pinned near a two-month high.
The Thai baht weakened, while the Malaysian ringgit and Indonesian rupiah declined 0.2 percent each. In contrast, the Philippine peso firmed 0.2 percent, and the Singapore dollar inched up.
Equity markets are experiencing some profit-taking following recent strong gains, said Massimiliano Bondurri, founder and CEO of SGMC Capital.
The US dollar continues to strengthen against most currencies — driven largely by expectations that a potential government shutdown may result in spending cuts, further boosting the greenback, Bondurri said.
Asian equity markets have enjoyed a strong run in recent weeks, thanks to the wave of AI-driven investor enthusiasm that seemed to brush aside concerns around the US shutdown and a lack of fresh economic data.
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