Market Roundup 20 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,592.73 points, increased 4.01 points or 0.25% with a trading value of 66 billion baht. The analyst stated that the Thai stock market moved in the same direction of other Asean markets due to not having an impact on the U.S. banning exports of microchips, while the recovery outlook in tourism also supported the market. The amalgamation of TRUE and DTAC also boosted speculation in the telecommunication sector.

The analyst expected SET Index to fluctuate tomorrow, giving a support level at 1,585 points and a resistance level at 1,605 points.


2) Thailand’s auto exports exceed 100,000 units in September

Thailand’s auto exports exceeded 100,000 units in September, the highest level in nine months, as a shortage of parts and semiconductors eased, according to official data released on Thursday.

In September, Thailand exported 100,389 cars, up 35.97% from the same period of last year. The export volume of vehicles in Thailand amounted to THB91,067 million, said the  Federation of Thai Industries (FTI).


3) Bank of Japan announced emergency bond buying as yen hits fresh 32-year low

The Bank of Japan said on Thursday that it would conduct emergency bond-buying operations, pledging to purchase around $667 million in government debt in an effort to stabilize bond prices.

The announcement came as the yen broke the 150 level against the US dollar, a level that was last seen in 1990 and is viewed as psychologically important for markets.

The growing interest rate gap between the United States and Japan has been a major factor in the yen’s decline this year. The rate on 10-year debt has been hovering around 0% due to Japan’s “yield curve control” (YCC) policy, which has been in place for a long time.

However, there has been no sign of a policy shift from the central bank as it has consistently emphasized the necessity to keep policy ultra-loose, citing a sluggish recovery, weak domestic demand, and numerous external dangers.

Meanwhile, Japan posted a trade deficit of 2 trillion yen ($13.3 billion) in September, as imports rose by more than 40% for the fifth consecutive month, reaching the highest figure on record as the yen continued to lose its value.

Ministry of Finance (MOF) data showed that Japan’s trade deficit for the fiscal first half to end-September increased to a record 11 trillion yen, primarily due to rising fuel costs and a 20% depreciation in the yen against the dollar during the time.