SINGAPORE: Asian stocks rallied, oil prices nursed losses and the dollar wobbled on Tuesday after U.S. President Donald Trump postponed the bombing of Iran’s power grid, allaying fear of a deeper energy shock.

Markets were taken on a rollercoaster ride at the start of the week after Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours, citing productive talks with unidentified Iranian officials, which Tehran ‌has denied.

“It’s a negotiating ⁠tactic… ⁠I don’t think that the U.S. administration wants to see oil at $150 because they themselves provoked it,” said Rajeev De Mello, chief investment officer at GAMA Asset Management.

Traders were quick to react to the reversal, sending crude futures tumbling and shares surging, while the dollar and government bond yields fell.

Most of the movement carried over to the Asian trading session on Tuesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.3%, while shares in Australia were up 0.7%.

Japan’s Nikkei advanced more than 2%, reversing most of Monday’s 3.5% decline.
U.S. futures were little changed after ending Monday’s cash session higher. Oil prices meanwhile edged higher on Tuesday after sliding 10% in the previous ⁠session. Brent ‌crude futures were up 1% at $100.94 a barrel, while U.S. crude rose 1.9% to $89.84.

Still, movement was highly volatile as war in the Middle East dragged on and the prospect of higher-for-longer energy prices lingered.

“Markets are not out of ⁠the woods,” said Chris Weston, head of research at Pepperstone.

“Price action could remain choppy into Friday’s revised deadline… The key question is whether participants see this as a genuine extension that brings a deal closer, or simply a delay that prolongs uncertainty.”

PARING RATE HIKE EXPECTATIONS

Yields on U.S. Treasuries steadied on Tuesday after a sharp fall overnight, in line with a decline in global bond yields as investors trimmed bets of aggressive interest rate increases by major central banks this year.

The two-year yield was little changed at 3.8498%, having fallen more than 6 basis points in the previous session. The benchmark 10-year yield was last at 4.3400%.

While traders have priced out the small chance that the U.S. Federal Reserve ‌could hike this year, they still expect rates to be left on hold.

The Bank of England is now seen raising rates just twice this year, compared to four previously, while market expectations for hikes from the European Central Bank have also been pared back.

“Unless the Strait (of Hormuz) ⁠is reopened very quickly, we are still more likely than not to see higher interest rates and a meaningful increase in oil importers’ costs in the coming weeks,” said Kit Juckes, head of FX strategy at Societe Generale.

In currencies, the U.S. dollar was on the back foot after falling on Monday, as a pick up in risk sentiment reduced demand for the safe haven currency.

The euro last traded at $1.1603, having risen 0.4% overnight, while sterling held near Monday’s two-week top and was last at $1.3420.

Against the yen, the dollar was up 0.04% at 158.54.

Data on Tuesday showed Japan’s core consumer inflation rate hit 1.6% in February to slide below the Bank of Japan’s 2% target for the first time in nearly four years, complicating the bank’s efforts to justify further interest rate hikes.

Spot gold was up 0.6% at $4,431.65 an ounce.

Thailand is enhancing its economy by promoting wellness tourism, collaborating public and private sectors to offer affluent foreigners medical, beauty, and travel services through Bangkok Dusit Medical Services’ 60 hospitals.

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Key Points

• Thailand’s private and public sectors are collaborating to enhance wellness tourism, targeting affluent foreign visitors.
• The initiative focuses on integrating medical care, beauty services, and travel experiences.
• By promoting wellness tourism, Thailand aims to drive economic growth and attract high-value visitors, exemplified by businesses like Bangkok Dusit Medical Services.

Collaborative Efforts in Wellness Tourism

Thailand is making significant strides in promoting wellness tourism by fostering collaboration between its private and public sectors. This initiative aims to attract affluent foreign tourists who are looking for comprehensive services that blend medical care, beauty treatments, and travel experiences. The focus is on enhancing the core tourism sector, which is essential for the country’s economic growth. By leveraging the expertise of businesses, such as Bangkok Dusit Medical Services (BDMS) that manages 60 hospitals, the government seeks to create a robust infrastructure for wellness tourism.

Economic Growth through High-Value Services

The efforts to enhance wellness tourism in Thailand are not merely about increasing tourist numbers but also about providing higher-value services that contribute to a more sustainable economy. By targeting wealthy tourists seeking medical and aesthetic treatments, the initiative aims to transform Thailand into a global hub for wellness services. This strategy is expected to lead to a double impact, boosting both the health industry and travel sectors, thus creating wealth for local communities while improving the country’s international reputation.

Future Prospects and Challenges

While the ambition to establish Thailand as a premier destination for wellness tourism is commendable, it also presents certain challenges. The industry must focus on maintaining high quality standards in both medical and service aspects to compete with other global players. Furthermore, continuous investment in marketing, infrastructure, and staff training will be critical to ensuring that Thailand is seen as a trusted choice for wellness tourism. Despite these challenges, the potential for economic growth makes this initiative a strategic priority for both government and business entities in Thailand.

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ET Intelligence Group: Powerica, a generator set maker, plans to raise ₹700 crore through fresh issue to repay debt and ₹400 crore through offer for sale. Promoter shareholding will fall to 77.4% from 100% after the IPO. The company has diversified into renewable energy and is expanding its wind power portfolio. However, it depends heavily on a single supplier, Cummins India, for engines used in gensets, accounting for over two-third of the total revenue. In addition, the company’s return on equity has been falling. Given these factors, investors may wait for a better clarity on financials after listing.

Business

Incorporated in 1984, Powerica is an integrated power solutions company with a dual business model spanning diesel generator sets and wind power generation. The generator set business remains the core revenue driver, contributing about 85% to total revenue in FY25. It also provides medium-speed large generators through collaboration with Hyundai. It operates three in-house manufacturing facilities located in Karnataka, Dadra & Nagar Haveli, and Maharashtra that serve industrial, commercial, data centre, and infrastructure customers.

The company diversified into clean energy in 2008 and has since built a wind power business covering independent power production (IPP), EPC (Engineering, Procurement, and Construction), and operations and maintenance (O&M) services. Its total installed operational wind capacity at the end of FY25 reached 279.6 megawatt (MW).

Financials
Revenue rose 5.3% annually to ₹2,653 crore in FY25 from ₹2,378 crore in FY23. Net profit increased by 25.8% to ₹175.8 crore from ₹106.5 crore during the period. However, the Ebitda margin declined to 13% in FY25 from 14% in FY23, underperforming peers such as Cummins India and Kirloskar Oil Engines, which reported margins of 19-23%.

Return on equity (ROE) declined to 17.5% in FY25 from 26.5% in FY24. The net debt-equity ratio fell to 0.2 in FY25 from 0.3 in FY23, but rose again to 0.4 in the first half of FY26 as the company ramped up ongoing wind projects.
Valuation
The issue is valued at the FY25 price-earnings (P/E) multiple of 28 based on post-IPO equity. Considering annualised profit for FY26, the P/E is 18.6 for the company. Cummins India, which manufactures engines and power generation systems, trades at a P/E of 52 while Kirloskar Oil Engines, engaged in diesel engines, agri-equipment and power solutions, trades at around 34.