Thai stocks skid on political uncertainty; BSP awaited
Thai stocks fall 0.8%
BSP rate decision due later in the day
U.S. consumer price grew at a slower rate
By Rajasik Mukherjee and Echha Jain
Aug 15 (Reuters) -Thai markets slipped on Thursday, weighed down by the dismissal of the country's incumbent prime minister which has sparked fears of political instability in the Southeast Asian country.
The Thai baht THB=TH, which has depreciated around 3% so far this year, lost 0.1% while stocks in Bangkok .SETI shed 0.8%. Thai stocks are down 9.4% this year - the worst performing Asian stock market after falling 15% last year.
On Wednesday, Thailand's Constitutional Court dismissed Prime Minister Srettha Thavisin and ruled he "grossly" violated ethics by appointing a minister who was once jailed, raising the spectre of political upheaval and a shake-up in the governing alliance.
"The removal, after less than a year in office, throws Thailand into further political uncertainty, which we expect to negatively impact investor sentiment," DBS analysts wrote in a note.
Meanwhile, global markets scrutinised the U.S. inflation reading which showed consumer prices grew moderately in July, firming expectations the Federal Reserve will cut interest rates soon.
Philippine stocks .PSI inched 0.2% higher while the peso PHP= slipped 0.1% ahead of the Bangko Sentral ng Pilipinas (BSP) key rate decision later in the day.
"The policy meeting is a very close call, with 13 out of 23 economists (including ourselves) calling for a 25bps rate cut, while the rest are calling for a hold," MUFG analysts wrote in a note.
The Chinese yuan CNY=CFXS shed 0.2% while Shanghai stocks .SSEC gained around 1%.
China's factory output growth in July missed expectations adding to concerns the recovery in the world's second-largest economy remains fragile.
The country's central bank also injected $81 billion cash through a short-term bond instrument.
Malaysia's ringgit MYR=, the best performing regional currency so far this year, lost 0.2% while stocks in Kuala Lumpur .KLSE slipped 0.1% ahead of gross domestic product data due on Friday.
A Reuters poll showed Malaysia's economy likely grew at its fastest pace in 18 months in the second quarter of 2024
Among other markets in emerging Asia, the Indonesian rupiah slipped 0.2% while Jakarta stocks .JKSE fell 0.4%.
Singapore's dollar SGD= depreciated 0.1% against the greenback while local equities .STI gained 0.7%.
South Korean and Indian markets are closed for public holidays.
HIGHLIGHTS:
** Indonesia's July exports up 6.5% y/y, beating forecast
** Japan's Nikkei rises on solid economic growth, US cues
** Thailand's Pheu Thai party to decide PM candidate as parliamentary vote looms
Asia stock indexes and currencies as of 0432 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.03 | -4.22 | .N225 | 0.94 | 9.89 |
China | CNY=CFXS | -0.22 | -0.80 | .SSEC | 1.04 | -3.18 |
India | INR=IN | - | -0.88 | .NSEI | - | 11.10 |
Indonesia | IDR= | -0.19 | -1.97 | .JKSE | -0.36 | 1.88 |
Malaysia | MYR= | -0.23 | +3.73 | .KLSE | -0.10 | 10.73 |
Philippines | PHP= | -0.11 | -2.85 | .PSI | 0.20 | 4.16 |
S.Korea | KRW=KFTC | - | -5.01 | .KS11 | - | -0.41 |
Singapore | SGD= | -0.11 | +0.16 | .STI | 0.71 | 2.14 |
Taiwan | TWD=TP | +0.02 | -4.84 | .TWII | -0.09 | 22.74 |
Thailand | THB=TH | -0.09 | -2.61 | .SETI | -0.80 | -9.43 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Rajasik Mukherjee & Echha Jain in Bengaluru; Editing by Jacqueline Wong
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.