Asia Stocks Trade Mostly Higher, Analyst Expects SET to Extend the Gain to 1,460pts!

Stocks in Asia traded mostly higher on Monday, June 8, 2020, in response to the U.S. a better-than-expected jobless rate for May and the extension of OPEC and its allies of cutting oil output.

 

As of 9:10 local time in Thailand (GMT+7), Nikkei gained 0.81%, SSEC rose 0.49%, HSI inched 0.66%, ASX 200 advanced 0.12%, while Kospi dipped 0.12%.

 

Last Friday, The Labour Department, on Friday, reported that the U.S. jobless rates fell to 13.3% in May, better than the 19.5% forecasted by analysts and also lower than a rate of 14.7% in April. Also, the Labour Department reported that 2.5 million jobs were created in May, raising hopes for the Americana of the economic recovery from the pandemic.

On Saturday, OPEC and its allies, led by Russia, agreed to extend the group’s production cut for an additional month by 9.7 million barrels per day, which is equivalent to 10% of global output in normal situations.

 

Krungsri Securities (KSS) had a positive view for SET in today’s trading session from the positive sentiment of the global market, expecting the index to reach 1,450-1,460 points before slowing down.

KSS asserted that the U.S. jobless data has shown that the plummet caused by coronavirus has bottomed out, and the economy would continue to recover in succession of the lockdown easing.

Moreover, the oil prices also reached $40/bbl due to the output cut by OPEC and its allies after a huge plummet in recent months.