Kaohoon Morning Brief – 23 May 2023

1) KSS expects SET Index’s range between 1,520-1,540pts, moving ups and downs

Krungsri Securities (KSS) expected Thailand’s SET Index to move between 1,520-1,540 points, boosted by more clarity in the political issues after the new coalition government signed an MOU. However, the market could move up and down, pressured by concerns over the U.S. debt ceiling and Fed’s officials that urged the central bank to continue raising rates to keep inflation down.


2) Fed Kashkari says holding rates not indication of ending hiking cycle

Minneapolis Federal Reserve President Neel Kashkari said that he is open to the central bank holding interest rates in June, but signalled that it is not an indication the hike cycle has ended.

Kashkari  told CNBC that right now it’s a close call either way, versus raising another time in June or skipping.

“Important to me is not signaling that we’re done. If we did, if we were to skip in June, that does not mean we’re done with our tightening cycle. It means to me we’re getting more information,” he said.


3) Japan’s manufacturing activity expands for the first time in seven months

Japan’s manufacturing activity in May rose for the first time in seven months, while the service-sector activity reached a record growth.

According to the survey data on Tuesday, the au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) hit a seasonally adjusted 50.8 in May, up from 49.5 a month prior. It is the first positive data for Japan since October as the recovery post Covid pandemic spurred business conditions.

Meanwhile, the au Jibun Bank flash services PMI rose to a record seasonally adjusted 56.3 in May, up from 55.4 in April.