CGS International Securities (Thailand) expected Thailand’s SET Index to move within the range of 1,285-1,335 points amid prolonged pressure from political concerns. The brokerage firm expected these concerns to continue pressuring the Thai stock market in the next two-three months. The firm recommended investors to monitor the court decision on June 18 for the case of dissolution of the Move Forward Party and the removal of Thai PM Srettha Thavisin.
China’s central bank, the People’s Bank of China (PBOC), maintained the interest rate on one-year medium-term lending facility (MLF) loans at 2.50%, as expected on Monday.
As 237 billion yuan worth of MLF loans were due to mature in the same month, the PBOC’s actions resulted in a net withdrawal of 55 billion yuan from the banking system.
Additionally, the central bank injected 4 billion yuan through seven-day reverse repos at an unchanged borrowing cost of 1.80%, according to an online statement.
China’s retail sales for May surpassed expectations, posting a 3.7% increase compared to the same period last year, beating the 3% rise forecasted by economists in a Reuters poll. However, other economic indicators such as industrial output and fixed asset investment fell short of Reuters’ projections.
Industrial output in China grew by 5.6% year-on-year, lower than the 6% anticipated growth, while fixed asset investment rose by 4%, slightly below the 4.2% forecasted by Reuters.
On the other hand, Chinese exports continued to show resilience, expanding by 7.6% year-on-year in May in U.S. dollar terms, surpassing the Reuters’ forecast of a 6% increase. However, imports failed expectations, registering a 1.8% rise during the same period.
