Kaohoon Morning Brief – 18 May 2023

1) FSS expects SET Index to bounce back after plunging 2.5% WTD

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to bounce back after losing 2.5% this week due to the uncertainty regarding the political situation in Thailand. Meanwhile, talks to raise the debt ceiling in the U.S. made some progress after President Joe Biden came out to assure the public that Washington will not default, resulting in fund flows into risk assets. The broker still recommended investors a domestic play and stocks with unique positive factors.


2) Japan’s exports for April fall to two-year low

Japan’s exports showed the weakest pace for growth in more than two years in April as shipment to China fell amid weak global demand.

According to the data released by the Ministry of Finance on Thursday, exports for April rose 2.6% from a year earlier, which was lower than a 3.0% growth expected by economists in a Reuters poll and a 4.3% increase in March.

Meanwhile, imports fell 2.3% in April, much larger than an estimate for a 0.3% drop. This marked its first annual decrease in 27 months, pressured by rising energy costs and weakening yen.

The trade deficit was 432.4 billion yen.


3) Labour market in Australia could be cooling after employment falls

Employment in Australia unexpectedly fell in April after an overwhelming gain for two months. Meanwhile, the jobless rate also rose for the month, signalling that the boom in the labour market could be slowing down.

According to the data released by the Australian Bureau of Statistics on Thursday, employment fell by 4,300 in April from March.

The jobless rate rose to 3.7% from nearly a 50-year low of 3.5%, despite estimations from analysts that the rate would remain stable.