Kaohoon Morning Brief – 13 February 2023

1) FSS expects negative movement in SET Index as investors wait for US inflation data

Finansia Syrus Securities (FSS) expected the Thai stock market to move sideways to sideways down within 1,655-1,670 points amid negative sentiment in the market as investors are monitoring the upcoming US CPI tomorrow.The market is upgrading Fed’s rate outlook higher and maintain at a high level longer, resulting in fund flows leaving risks assets as U.S. bond yield continued to rise.


2) Singapore’s 4Q22 GDP growth adjusted downward to 2.1%

Singapore’s economy slightly grew slower than previously estimated in the fourth quarter, according to the Ministry of Trade and Industry (MTI).

The economic growth in the fourth quarter of 2022 rose 2.1% YoY, compared to a 2.2% growth in the government’s advance estimate, official data showed on Monday. Weaker construction and service sector growth were main factors for the slowdown.

The fourth quarter growth was still lower than a 2.3% rise expected by Reuters poll.

Gross domestic product (GDP) for 2022 grew 3.6% compared to an initial 3.8% estimate.


3) The nomination of Kazuo Ueda as BOJ’s governor could phase out ultralow interest rates sooner

Japan has decided to nominate Kazuo Ueda, a former BOJ policy maker who has been supporting the policies of Kuroda, as the next central bank governor.

Most analysts said the appointment of Ueda was totally unexpected as he was not even considered a dark horse candidate. This could signal a move to phase out ultralow interest rates sooner than initially expected.

He told reporters that the Bank of Japan’s current policy is appropriate, while noting that monetary easing must continue even with inflation running at 4%, which is higher than the BOJ’s target of 2%.

Once officially appointed, he will replace Haruhiko Kuroda, whose term started on April 9 2018 and will end on April 8 2023.