Thailand’s SET Index closed at 1,354.87 points, increased 13.84 points or 1.03% with a trading value of 62.54 billion baht. The analyst stated that the Thai stock market continuously increased following advancements in the cabinet formation process. Investors are eagerly anticipating forthcoming policy declarations and progress on the implementation of the digital wallet initiative, which could potentially inject a favorable outlook into the market upon its rollout.
The analyst expected a marginal slowdown in market momentum with narrow trading expected in the upcoming week.
Japan achieved a new milestone in July by welcoming a record number of visitors for the second consecutive month.
The tourism surge was fueled by the devaluation of the yen and summer vacations, with a total of 3.29 million foreign visitors – the highest ever recorded in a single month, surpassing June’s previous record of 3.14 million, as reported by the Japan National Tourism Organization (JNTO).
Thaksin Shinawatra, Thailand’s ex-prime minister, expressed support for his party’s 500 billion baht ($14.5 billion) handout plan aimed at revitalizing the country’s sluggish economy. His daughter, Paetongtarn Shinawatra, was recently elected as the Prime Minister by parliament, and Thaksin is anticipated to influence her governance closely, despite holding no official government position.
In a speech in Bangkok, Thaksin emphasized the necessity of the economic stimulus package, gave a touch on Thailand’s equity market, addressed the need for safeguarding the economy against the influx of low-cost Chinese goods, and called for reforms in the agriculture sector to enhance competitiveness and income, alongside infrastructure improvements in tourism.
Most Asian currencies, including the Thailand baht and Indonesian rupiah, strengthened on Friday as anticipation grew for a potential rate cut by the Federal Reserve in September.
Investors are closely monitoring Fed Chair Jerome Powell’s speech at the Jackson Hole symposium for insights on the interest rate outlook and economic conditions. Recent Fed minutes and comments from officials indicate growing expectations of an imminent rate cut in the US.
With Fed rate cuts appearing more certain, Asian currencies are aligning with the narrowed yield gap, as noted by analysts from Capital Economics. Asian markets, including those in Bangkok, Jakarta, Seoul, and Beijing, saw varying levels of gains, while the Japanese yen strengthened by 0.3% after Japan’s central bank governor reiterated the determination to raise interest rates if inflation targets are met.
