Middle East tensions cast shadow over Asian bourses

The Stock Exchange of Thailand Index dropped this morning along with other major Asian stock markets. 
The SET Index was down 0.73 per cent in opening trade at 1,583.37, while the Nikkei 225 fell sharply by almost 2 per cent, South Korea’s Kospi also fell more than one per cent, Malaysia’s KL Composite lost almost one per cent, the Singapore Straits Times index was down about half a per cent, but China’s Shenzhen Composite was up about one per cent and the Shanghai Composite was up about half a per cent. 
Kasikorn Securities said on Monday that the SET Index was under pressure from the tension in the Middle East. 
For this week's outlook, KSecurities expects the SET to have support at 1,580 and 1,565 points, but resistance at 1,615 and 1,640 points, respectively. Key matters to watch include the deliberations on Thailand’s budget bill for fiscal 2020, US-China trade issues and the Middle East situation. 
Key US indicators include the December purchase managers index, services indices, non-farm payrolls and unemployment rate. Other international factors that warrant close monitoring include the euro-zone and Japan’s December PMI Composite Indices plus China’s December PPI and CPI.
Last week, the SET Index rose week on week, ending at 1,594.97 points, up 1.06 per cent week on week. The average daily trading value was Bt48,445.61 million, up 40.69 per cent week on week. The MAI closed at 311.58 points, up 1.14 per cent week on week. The SET Index moved within a tight range at the end of 2019 before surging at the beginning of 2020 on institutional investor purchases, 
supported by the progress in US-China trade issues, as President Donald Trump said he would sign the first phase of the trade deal with China on January 15 and travel to Beijing to begin talks on a second 
phase of the deal. However, the SET pared gains somewhat at the end of the week amid concerns over the Middle East situation, KSecurities said.