Major stock markets in Asia traded lower on Thursday following a decline in oil prices after a report of Saudi Arabia is prepared to ramp up output to replace Russia.
As of 10:31 local time in Thailand on June 2, 2022, Nikkei dipped 0.17%, SSEC slipped 0.10%, Hang Seng Index dropped 1.74%, ASX 200 decreased 1.02% while IDX Composite increased 0.33%.
Thailand’s SET Index opened at 1,656.50 points, decreased 3.51 points or 0.21%.
Financial Times reported that Saudi Arabia is prepared to raise crude production if Russia’s oil production significantly drops following the European Union’s embargo.
Brent crude fell 1.87% to $114.12 per barrel, while The West Texas Intermediate dropped 2.06% to $112.88 per barrel.
Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on June 2, 2022, expected SET Index to move in sideways trends following a decline in oil prices. Meanwhile, investors are uncertain of the central bank moves on balance sheet tightening amid rising inflation, while the U.S. economic data is still on a positive trend.
The strategist recommended to monitor the announcement on June 10 for U.S. inflation in May and the stock market should move in a limited range during this period.