Major stock markets in Asia traded mostly higher on Monday despite China’s services activity contracted in May.
As of 10:20 local time in Thailand on June 6, 2022, Nikkei rose 0.30%, SSEC gained 0.60%, Hang Seng Index increased 0.82%, ASX 200 dipped 0.43% and IDX Composite fell 1.05%.
Thailand’s SET Index opened at 1,650.53 points, increased 2.86 points or 0.17%.
China’s services activity contracted for a third straight month in May, according to a private business survey showed on Monday.
The Caixin services purchasing managers’ index (PMI) rose to 41.4 in May from 36.2 in April, though still contracting, the reading edged higher as Chinese authorities eased some Covid-19 restrictions in May. However, the rise to 41.4 was still below market expectations of 47.3.
Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on June 6, 2022, advised investors to keep a close eye on ECB and MPC meeting on monetary policy, while inflation data of Thailand and the U.S. will be announced this week as well, which is expected to remain high.
The strategist expected upsides for the SET Index to be limited amid slowing down in foreign fund flows, giving a support level at 1,630-1,620 and 1,610 points. However, Mr. Suntarapichard believed that the index will not break the previous low at 1,578 points.
In addition, the strategist recommended BLA (rising bond yields), BJC (speculation on SET50 inclusion and strong sales) and BCP (low price and rising refining margin).