Thailand’s SET Index closed at 1,306.41 points, increased 8.12 points or 0.63% with a trading value of 56.46 billion baht. The analyst stated that the Thai stock market increased from a technical rebound and the announcement of export numbers in May, which rose more than 7% and beat market expectations. Meanwhile, investors looked forward to stimulus measures for the Thai economy and stock market.
The analyst expected the market to trade with volatility next week, as investors monitored stimulus measures from the government.
Data released on Friday showed that Japan’s core inflation surged in May driven by energy levies, while a key index excluding fuel decelerated for the ninth consecutive month. This complicates the Bank of Japan’s (BOJ) dilemma on the timing of interest rate increases.
Core consumer price index (CPI), which excludes volatile fresh food, rose by 2.5% from a year earlier, boosted by an increase in the renewable energy levy. However, the index stripping away both fresh food and fuel slowed to 2.1% in May, the lowest year-on-year increase since September 2022.
The slowdown in “core core” inflation, closely monitored by the BOJ, raises doubts about the central bank’s belief that wage growth will propel consumption and sustain inflation towards its 2% target.
Japan has announced a new round of sanctions targeting individuals and entities backing Russia’s war on Ukraine. The restrictions extend to companies in India, Kazakhstan, and Uzbekistan and mark the first instance of Japan imposing sanctions on China-based businesses related to the conflict in Ukraine.
Among the firms facing sanctions are Hong Kong-based Asia Pacific Links Ltd, a provider of microchips for Russian drones, and China-based Yilufa Electronics Limited. These sanctions, mirroring measures taken by other nations such as the United States, prohibit Japanese companies from exporting to the sanctioned entities.
Thailand’s exports witnessed a significant increase for the second consecutive month in May, rising by 7.2% compared to the previous year, as confirmed by the commerce ministry on Friday. This figure surpassed analysts’ expectations, marking a notable achievement.
The May export growth exceeded the forecasted 1.89% year-on-year increase indicated in a Reuters poll, following a 6.8% upturn in April. Over the initial five months of 2024, exports surged by 2.6% from the previous year. Despite challenges, the ministry maintained its export growth target for the year at 1% to 2%, following a 1% decline in 2023.
