Thailand’s SET Index closed at 1,364.48 points, decreased 3.36 points or 0.25% with a trading value of 35.77 billion baht. The analyst stated that the Thai stock market slightly decreased as it was pressured by the speculative sales from power plant stocks, following concerns over a potential rise in production costs in power plants due to an increasing LNG prices since the beginning of May. Meanwhile, stocks related to food exports increased from outstanding 1Q24 performance. Thailand’s export figures in April and the weakened baht also benefited the index.
The analysts expected the market to trade sideways next week, while investors monitored the announcement of PCE figures from the US and the resolution of the Thai cabinet’s meeting.
Japan’s consumer price index (CPI) inflation decreased as predicted in April, with private spending remaining weak, fueling skepticism about the Bank of Japan’s projection of increased inflation and its ability to raise interest rates.
The core CPI, excluding volatile fresh food prices, increased by 2.2% year-on-year in April, meeting expectations and down from the 2.6% growth in the previous month.
A key indicator of underlying inflation used by the BOJ, the core CPI, which excludes both fresh food and food prices, dropped to 2.4% in April from 2.9% in March. This marked the lowest level since September 2022 and significantly below the 40-year peak reached in mid-2023.
The headline CPI inflation also declined from 2.7% to 2.5% compared to the previous month.
During JPMorgan’s Global China Summit, co-head of global banking Filippo Gori highlighted India and Japan as standout performers in Asia’s vibrant equity and deal-making landscape, and emphasized the strong demand for investments in Japan and India, referring to them as “bright spots” in the region.
Both Japan’s Nikkei 225 stock index and India’s Nifty 50 have seen significant growth of nearly 26% over the past year, according to data from LSEG. Despite a global decline in mergers and acquisitions (M&A) activity, Japan experienced a 23% rise in deal value to around $123 billion in 2023, as reported by Bain & Company.
Countries like India and Japan have been capitalizing on the “China Plus One” strategy, attracting investors seeking alternative destinations amidst escalating U.S.-China tensions. India, in particular, is projected to experience increased M&A activity, driven by companies expanding their manufacturing presence in the country.
Gori highlighted the evolving dynamics in the region and noted that geopolitical factors could influence dealmaking activities in the coming years.
According to the Office for National Statistics (ONS), retail sales volumes in the UK experienced a 2.3% decline in April, with wet weather dissuading shoppers from making purchases, while economists surveyed by Reuters had anticipated a drop of 0.4%.
The dip in sales volumes was widespread across various sectors, with clothing retailers, sports equipment, games and toys stores, and furniture stores particularly affected by reduced foot traffic caused by inclement weather, as stated by the ONS.
A revision of the previous month’s data revealed that March’s retail sales figure, initially reported as unchanged, actually decreased by 0.2%, indicating a trend of subdued consumer spending in recent months.
