1) FSS expects sideways trend in Thai market after three-day winning streak
Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend after three-straight gains in response to the progression of political issues in the kingdom. 1,520 points remains a strong resistance barrier for the market. The analyst recommended the market to keep an eye on Thailand’s inflation data for June, which is scheduled to be released this morning. A lower-than-expected reading or signs of slowing down could reflect the Thai central bank’s decision on rate policy in the second half of this year, which would benefit the equity market.
2) Japanese service activity grows in June, but slow down from May
Japanese service activity remained in expansionary territory in June on the back of healthy economic demand, according to a private poll released on Wednesday.
After hitting a record high of 55.9 in May, the final au Jibun Bank Japan Services purchasing managers’ index (PMI) dropped to 54 in June, still well over the 50-mark that separates contraction from expansion.
3) China’s service sector continues to grow, but at slowest pace in five months
China’s service sector activity expanded for the sixth consecutive month in June, but at the slowest pace in five months, according to a Caixin/S&P Global survey released on Wednesday, as demand subdued on post-pandemic recovery momentum stalled.
The Caixin services purchasing managers index for June came in at 53.9, a slower rate of expansion than the 57.1 recorded in May.
Compared to May, company activity and new orders grew at significantly slower rates in June, according to the poll, with several companies reporting weaker than projected market demand.
The Caixin/S&P composite PMI, which measures manufacturing and services, decreased to 52.5 in June from May’s 55.6, but this still marks six months of growth.
