Market Roundup 7 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,579.66 points, decreased 9.52 points or 0.60% with a trading value of 50 billion baht. The analyst stated that the Thai stock market traded lower in the same direction as Asian markets in response to weaker Thai baht amid rising US bonds, while there were selloff to lower the risks ahead of next week’s long holiday.

The analyst expected SET Index next week to move in sideways trends, giving a support level at 1,565-1,575 points and a resistance level at 1,590-1,600 points.


2) U.S. September job growth likely to slow as Fed hikes take effect

Job growth is likely to have slowed in September after a series of massive interest rate hikes pierced the US economy, but a lower nonfarm payroll gain is unlikely to stop policymakers from taking aggressive monetary action to combat inflation, which remains at a decades-high.

The Labor Department is set to release its latest monthly jobs report on Friday.

The unemployment rate is forecast to remain unchanged at 3.7% in September, with strong annual wage gains anticipated from the Labor Department report.

Nonfarm payrolls are expected to have increased by 250,000 last month, following a 315,000 increase in August. This would be the lowest monthly reading since December 2020, but it would still be significantly higher than the average monthly reading in the 2010s of 167,000.

Any improvement in September employment figures would be a welcome indication for Fed officials attempting to calm an exceptionally tight labor market that has put upward pressure on salaries and contributed to rising prices, according to economists at Yahoo Finance.


3) Bank of Korea opens for more rate hikes as inflation to persist at 5% throughout 1H23

Rhee Chang yong, the Governor of the Bank of Korea, said inflation is probably to stay around 5% throughout the first half of next year, which would ensure more increases in interest rates from the central bank.

The governor has kept the door open for a continued monetary tightening, while analysts expect the base rate to peak at 3.50% in 1Q2023.

“Inflation in the 5% range could continue through the first half of next year,” Rhee said.

The bank’s expectancy increased among analysts for a 50 basis point hike in interest rates to 3.00% when the Bank of Korea reviews policy at its October 12 meeting.


4) China’s foreign reserves fall to 5-year low in September

China’s foreign exchange reserves decreased in September, according to government data released on Friday, as the dollar rose against other major currencies.

Last month, the country’s foreign exchange reserves dropped to $3.029 trillion from the end-of-August total of $3.055 trillion.

For the foreseeable future, China’s “current account will maintain a reasonable size surplus,” according to State Administration of Foreign Exchange spokesperson Wang Chunying.

In September, the yuan lost 3.2% of its value against the dollar, while the dollar gained almost the same amount against a basket of other major currencies.