Market Roundup 2 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,625.02 points, decreased 0.71 points or 0.04% with a trading value of 66 billion baht. The analyst stated that the Thai stock market moved in sideways trends ahead of the Fed’s meeting later tonight, while recommending investors to monitor any signals that should hint for the next move in December.

The announcement for a 75bps rate hike by the Fed should spur risk assets that that market already priced in for this raise and led to weakening dollar index.

There should be inflow into Thailand amid weaker dollar if all was according to expectations, while the overall economy is still boosting Thailand in a mid-term outlook.


2) Hong Kong halts stocks trading session in ahead of tropical cyclone

Hong Kong’s Hang Seng Index halted its trading session in the afternoon after the city issued a warning of a Tropical Cyclone Warning Signal Number 8.

Hang Seng Index recorded a gain of 2.41% before halting the trade on Wednesday, November 2, 2022.

The No. 8 Northwest Gale or Storm Signal means that winds with speeds of 63 kilometres per hour or more are expected as the government told its citizens to stay away from the shoreline and not to engage in watersports.


3) BOT warns Thai growth may fall below 3% next year if tourism and exports slump

The Bank of Thailand on Wednesday issued a warning on economic growth next year, saying it could fall short of target if the number of tourists visiting the country drops below the 19 million milestone and exports see a deficit  from the 1.1% growth projection.

The BOT’s Deputy Governor for Monetary Stability, Mr. Mathee Supapongse, has stated that if foreign tourist numbers come up short of expectations, Thailand’s GDP growth could fall below 3%.

However, at this stage, he maintained economic forecasts for the kingdom to grow 3.3% this year and 3.8% in 2023, supported by consumption and the return of tourists.


4) South Korea’s October inflation rises, supporting tighter monetary policy

Inflation in South Korea rose again in October, reflecting sustained consumer demand and growing pressure on the central bank to maintain hiking interest rates.

Wednesday’s report from the statistics office showed that annual consumer price inflation accelerated to 5.7% from 5.6% in September, in line with predictions made by economists. The rate of core inflation jumped to 4.8%, much more than the 4.5% economists had predicted.

This outcome highlights the importance of maintaining the Bank of Korea’s (BOK) current monetary policy of tightening. The central bank will meet in three weeks to decide whether to deliver another half-point increase or return to a more moderate pace of 25 basis points.

The BOK has lifted its benchmark by a half-point in two of its last three meetings, aiming to narrow a rate gap with the Fed and halt its currency’s devaluation.