Asian shares powered by tech rally, yen revives

RECAP: Hong Kong led beneficial properties throughout most Asian and European markets on Friday due to a surge in tech giants, whereas the yen prolonged beneficial properties towards the dollar on revived hopes for US rate of interest cuts.

The SET index moved in a variety of 1,352.84 and 1,372.85 factors this week, earlier than closing on Friday at 1,369.92, up 0.7% from the earlier week, with every day turnover averaging 40.47 billion baht.

Institutional traders have been web consumers of 1.3 billion baht, adopted by brokerage companies at 26.03 million. Foreign traders have been web sellers of 672.28 million baht, adopted by retail traders at 649.96 million.

NEWSMAKERS: The US Federal Reserve on Wednesday left its benchmark rate of interest unchanged as anticipated, citing an absence of progress in direction of a 2% inflation goal. However, it dominated out a price hike to rein in costs, and dismissed discuss of stagflation.

• The yen appreciated to the higher 152 vary towards the US dollar on Friday in Asian buying and selling, after suspected intervention by Japanese authorities. The forex had opened the week by falling previous 160.
• The euro zone emerged from recession with progress of 0.3% within the first quarter and inflation held regular at 2.4% in April. The European Central Bank is predicted to begin slicing rates of interest in June.
• Apple shares jumped late Thursday after the iPhone maker posted stronger-than-expected revenue of $23.6 billion on $90.8 billion in income within the first three months of this 12 months. The firm additionally introduced a $110-billion stock buyback plan, the biggest of its variety in US historical past.
• The OECD raised its forecast for world progress in 2024, boosted by a dynamic restoration within the US. It stated it now sees world GDP rising 3.1%, up from its earlier projection of two.9%.
• Standard Chartered reported higher than anticipated first-quarter outcomes, with pre-tax revenue up 6% year-on-year to $1.9 billion, on the again of upper rates of interest and progress in its wealth and banking enterprise.
• HSBC reported first-quarter income of $20.8 billion, exceeding forecasts, however web revenue was down barely from a 12 months in the past at $10.84 billion.
• Bitcoin registered its worst month for the reason that collapse of FTX empire, slumping nearly 16% in April, only a hair under the decline seen in November 2022. The cryptocurrency was traded at about 59,800 early Friday, in comparison with its file excessive of virtually $74,000 in mid-March.
• Binance founder Changpeng Zhao was sentenced on Tuesday to 4 months in jail after pleading responsible to violating US money-laundering legal guidelines on the world’s largest cryptocurrency alternate.
• Microsoft CEO Satya Nadella introduced a brand new knowledge centre in Thailand to assist cloud and AI demand, with an estimated funding of $1 billion. Similar initiatives have been introduced for Malaysia ($2.2 billion) and Indonesia ($1.7 billion). The firm has additionally pledged to coach 2.5 million individuals within the area in the usage of AI by 2025.
• Headline client inflation in Thailand rose 0.2% year-on-year in April after seven straight months of declines, The Ministry of Commerce stated on Friday. The core Consumer Price Index rose 0.37%.
• The current enhance in home diesel costs is fuelling contemporary issues about inflation however producers are anticipated to take care of costs of products within the brief time period to keep away from burdening customers, says the Federation of Thai Industries (FTI).
• The Bank of Thailand estimates that GDP grew simply 1% 12 months on 12 months within the first quarter, noting that the economic system slowed in March attributable to weaker home demand and tourism. It expects the economic system to get better, although, saying it isn’t revising down its full-year forecast right now.
• Baht depreciation softened in April, supported by enhancing financial momentum. During the primary quarter, the baht weakened by 7.8% towards the dollar, the second-largest depreciation price in Asia, trailing solely the Japanese yen, which fell 9.6%.
• Government spokesperson Chai Wacharonke stated the minimal wage would rise to 400 baht a day nationwide, with gradual will increase beginning on Oct 1. The nationwide wage committee will focus on particulars on May 14.
• Contracts for brand spanking new state funding initiatives value 250 billion baht have already been signed for the reason that enactment of the fiscal 2024 Budget Expenditure Act final month, in accordance with the Ministry of Finance.
• The Board of Investment stated it obtained 724 funding functions within the first quarter, up 94% year-on-year, with a mixed undertaking worth of 228 billion baht, up 31%, reflecting elevated investor confidence.
• Tourism operators are urging the brand new tourism minister to revive the plan to gather a 300-baht charge from vacationers as a result of it isn’t thought of an impediment to arrivals.
• B.Grimm Power stated it will make investments $3.39 million to accumulate a 40% shareholding in ThreeEightSix Holdings Ltd, an impartial energy producer, aiming to penetrate the clear power market within the Middle East.
• Businesses are repeating their name for the federal government to alter the nation’s electrical energy market from a single-buyer system as a result of it doesn’t assist elevated use of renewable power that companies may purchase direct from producers.
• AirAsia is banking on tourism progress inside Southeast Asia to assist its newest airline, AirAsia Cambodia, with inaugural flights getting underneath means on Thursday.
• The Ministry of Finance will begin gathering 7% value-added tax in May on imported items from Singapore, Malaysia and Vietnam valued underneath 1,500 baht after cupboard approval.
• Bangkok Bank (BBL) took the lead amongst industrial banks slicing their minimal retail price (MRR) for loans by 25 foundation factors, whereas state monetary establishments additionally determined to chop their MRR from May 1 for six months to help weak retail and SME clients.
• SET-listed Ratch Group expects optimistic enterprise prospects for its coal-fired thermal energy crops in Indonesia after buying them from Mitsui & Co for $590 million.

COMING UP: On Tuesday, the Reserve Bank of Australia will announce its rate of interest resolution and the US will launch a client credit score replace. China will report April commerce figures on Wednesday. The Bank of England will maintain a price assembly on Thursday, and Japan will replace family spending knowledge. Due Friday is a Chinese inflation replace and month-to-month GDP from the UK.

• Domestically, the Thai National Shippers’ Council will focus on the export outlook on Tuesday. An up to date investor confidence index can be launched on Wednesday. On Friday, members of the Senate full their 5-year time period.

STOCKS TO WATCH: Yuanta Securities recommends accumulating shares primarily based on three themes: retail performs that can be main beneficiaries of financial stimulus, notably CPALL and BJC; meals and beverage companies with a very good export outlook given the weak baht: ICHI, SAPPE, OSP, CBG and COCOCO; hospital operators BDMS and BH as they’re anticipated to outperform their trade.

• Tisco Securities recommends shares anticipated to point out year-on-year progress, amongst them AAI, BDMS, CPAXT, ICHI and NSL; and shares with an opportunity of getting into the SET50 within the second half: BJC and ITC. Top picks for May are AAI, BDMS, BJC, CPAXT, ICHI, ITC, NSL and STANLY.

TECHNICAL VIEW: Tisco Securities sees assist at 1,350 factors and resistance at 1,380. InnovestX Securities sees assist at 1,350 and resistance at 1,380.