UOB recommends AI-related foreign stocks, neutral on Thai equity

Khaosod•Economy•6d ago

Reader Briefing

UOB recommends diversifying investments into US, China, Taiwan, and South Korea to capture the AI cycle while maintaining a neutral outlook on Thai stocks.

•UOB maintains a neutral weight on Thai stocks due to limited economic growth and concentrated market recovery.
•UOB forecasts the global economy to remain strong in the second half of 2026, driven by US consumption and AI technology investment.
•UOB predicts the US economy will grow by 1.7% and the Chinese economy by approximately 4.6% in 2026.
•UOB expects the US Federal Reserve to maintain interest rates for the remainder of 2026 and potentially lower them in 2027.

Overview

•UOB has adjusted the Thai GDP forecast for this year upward by 1.9% but keeps a neutral weight on Thai stocks.
•UOB cites limited economic growth and concentrated market recovery as reasons for the neutral stance on Thai equities.
•UOB suggests diversifying investments into the US, China, Taiwan, and South Korea to align with the AI cycle.
•UOB predicts the US economy will expand by 1.7% in 2026, supported by high-income and high-asset households who make up 20% of households but 60% of consumption.
•UOB forecasts China's economy to grow by approximately 4.6% in 2026, driven by the industrial sector and exports.
•UOB expects US general inflation to be at 3.5%, leading the Federal Reserve to likely hold interest rates throughout the rest of 2026.
•UOB indicates the Federal Reserve may begin reducing interest rates in 2027.
•Abel Lim of UOB Thailand stated that high global uncertainty is not a reason for investors to withdraw from risky assets, but rather to choose risks appropriate for expected returns.

Full article content is available on the original source.

Read on Khaosod (Thai Version)

Source: Khaosod (Original)

View Original Article

Key Entities

Organization

UOB(ยูโอบี)

A bank that provides economic assessments and investment recommendations.

UOB Thailand(ธนาคารยูโอบี ประเทศไทย)

The Thailand branch of UOB bank.

Federal Reserve(ธนาคารกลางสหรัฐฯ)ℹ️

The central bank of the United States, referred to as Fed.

Place

United States(สหรัฐฯ)ℹ️

A country whose consumption and AI technology investments drive the global economy.

China(จีน)ℹ️

A country whose economy is expected to be driven by industry and exports.

Taiwan(ไต้หวัน)ℹ️

A recommended destination for investment to capture the AI cycle.

South Korea(เกาหลีใต้)ℹ️

A recommended destination for investment to capture the AI cycle.

Person

Abel Lim(เอเบิล ลิม)

Head of Deposits and Wealth Management at UOB Thailand.