Thailand’s SET Index closed at 1,256.69 points, increased 3.98 points or 0.32%, with a trading value of THB 30.84 billion. The analyst stated that the Thai market traded relatively flat as there were no supporting catalysts from both domestic and overseas, while the flooding situation in the southern region suggested impacts on the economy.
For next week, the analyst to continue a similar trend, moving sideways and remaining relatively stable. Trading volumes are expected to be thin ahead of a long holiday period.
Thailand’s manufacturing production index edged down 0.08% year-on-year in October, better than analyst expectations for a deeper decline. A Reuters poll had projected a 0.6% contraction, while the previous month saw a revised annual increase of 1.19%.
Ongoing U.S. trade policy continues to pressure Thailand’s industrial and processed agriculture sectors, causing industrial confidence to wane. Furthermore, the country’s tourism sector has experienced a persistent decline in international arrivals, adding another layer of strain to broader economic performance.
Goldman Sachs stated that mounting strains in the relationship between China and Japan could trim roughly 0.2 percentage points from the GDP growth of the world’s fourth-largest economy if declines are seen in tourism and the export of consumer goods to the Chinese market.
The assessment draws on the impact observed during China’s dispute with South Korea over the THAAD missile defense system in 2016 and 2017, and considers the risk that current China-Japan friction could be prolonged.
