Daily Strategy: KSS Expects U.S. Inflation to Rise amid Plunging Asian Stock Market

Major stock markets in Asia traded lower in the morning session as Chinese inflation rose to 1.5% in October.


Thailand’s SET Index opened at 1,629.50 points, decreased 2.19 points or 0.13%.

As of 10:08 local time in Thailand, Nikkei fell 0.30%, SSEC plunged 1.39%, Hang Seng Index dropped 1.03%, ASX 200 dipped 0.10% and IDX Composite slipped 0.076%.

Earlier this morning, China’s consumer inflation for October came in at 1.5%, which is roughly in line with the expectations for 1.4% increase. The inflation for October at 1.5% increased from 0.7% YoY and 0% in the previous month.

Oil prices continued to rise in response to higher demand after the economic reopening. U.S., Europe, Australia, Singapore, and Thailand are among countries worldwide that began to lift travel bans to recover their economies hit by Covid-19 pandemic in early 2020.

In the early Asian trading session on Wednesday, Brent crude rose 0.51% to trade at $85.21 per barrel. West Texas Intermediate rose 0.26% to trade at $84.37 a barrel.


Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad Program” on November 10, 2021, stated that the Fed’s tapering showed that the U.S inflation is rising, while the consensus for U.S. core CPI for October is expected to increase 4.3% YoY and 4% MoM, which could potentially impact the sentiment in the stock market.

Meanwhile, the rising oil price could be a supporting factor for some stocks in the energy sector. Mr. Jiwangkul noted that a sharp rise would send a negative factor to refinery stocks, while gradual increase or steady price at a high level would benefit the energy sector as a whole.