New Prime Minister Paetongtarn Shinawatra said on Monday a cabinet has been selected and should be submitted for royal endorsement within this week, soothing investors' nerves over the recent political uncertainty in Thailand. - Photo: Reuters
BANGKOK (Reuters): Thailand equities were one of the few gainers among Asian emerging markets on Tuesday as the new government solidifies its position ahead of taking power, while major regional currencies dropped with the Malaysian ringgit slumping the most.
Bangkok stocks rose 0.5% while the Thai baht fell 0.3% against a strengthening US dollar.
New Prime Minister Paetongtarn Shinawatra said on Monday a cabinet has been selected and should be submitted for royal endorsement within this week, soothing investors' nerves over the recent political uncertainty in Thailand.
Srettha Thavisin was dismissed as prime minister by a court last month.
"The Thai political landscape is improving with the swift transition to a new PM and policy continuity from the previous government," said Ratasak Piriyanont (Sak), investment strategist at Kasikorn Securities.
The Singapore stock market was the only other gainer in South-East Asia, rising 0.2% to its highest level since July 17, while shares in Indonesia and Taiwan dragged 0.6% and 0.5% respectively.
Bank Negara Malaysia (BNM), the country's central bank, is expected to keep its key interest rate steady on Thursday amid robust growth and continued efforts to keep inflation in check. Analysts at Maybank expect BNM to keep rates unchanged and see limited impact from the policy decision.
"External events especially those related to the US, China and Japan are likely to remain the key drivers going forward," Maybank noted in regard to the ringgit.
The currency fell 0.6% against the US dollar during the day whereas equities in Kuala Lumpur fell 0.6%.
Other major emerging Asia currencies dragged for the day as investors remained cautious in a week packed with economic data including the key US jobs report that could influence the size of an expected Federal Reserve interest rate cut later this month.
The Philippine peso, South Korean won and Taiwan dollar slipped between 0.3% and 0.4%. South Korea's consumer inflation rate fell in August to the weakest in nearly 3-1/2 years, official data showed on Tuesday, supporting market expectations for an easing of monetary policy as early as next month. - Reuters
