Stocks in Asia Trade Slightly Higher, the Analyst Expects Speculative-Buy in Thai Stocks

Stocks in Asia traded higher on Wednesday while Japan and China stock exchange remained closed for the holiday amid the plummet in U.S. tech stocks.

 

As of 9:12 local time in Thailand on May 5, 2021, HSI increased 0.36%, ASX 200 rose 0.67%, and Kospi gained 0.64%.

Over the night, Dow Jones closed slightly higher at 34,133.03 points, increased 0.06%. However, S&P 500 fell 0.67% and Nasdaq plunged 1.88% for its worst day since March.

 

The plummet came after investors traded defensively over U.S. Treasury Secretary Janet Yellen’s comment on Tuesday that interest rates may have to increase to prevent the U.S. economy from overheating.

The statement came after last week the Federal Reserve kept its benchmark interest rates unchanged at the record-low level of near zero.

 

Tisco Securities expected the Thai stock market to weaken in fears of the Fed increasing its policy rate faster than expected after the US plans to invest in large infrastructure, which may result in an acceleration of inflation.

However, the analyst stated that SET Index may get a boost from the energy sector after rising oil prices, while the financial statement in 1Q21 of the banking sector and the real sector came out better than expected. Thus, Tisco Securities expected a speculation during the stock down.

The analyst suggested a close monitor on the situation of Covid-19 in Thailand and its neighbours, including the Thai cabinet meetings and MPC for the inflation outlook as well, giving a support level at 1,575 – 1,560 points and a resistance level at 1,595-1,600 points.