Asia Stocks Pull Back as Investors Monitor 4Q20 Earnings, Oil Prices Continue to Climb

Stocks in Asia retreated in the morning session on Thursday, February 4, 2021, as investors awaited the announcement of 4Q20 earnings.

 

As of 9:17 local time in Thailand, Nikkei slipped 0.44%, SSEC dropped 0.24%, HSI decreased 0.11%, ASX200 fell 0.67% and Kospi dipped 0.96%.

Yesterday, SET Index closed at 1,481.75 points, decreased 4.50 points or 0.30% with a trading value of 79.4 billion baht.

 

CGS- CIMB Securities stated that the Thai stock market still has a positive momentum this morning, but could face a profit-taking after a surge early this week that almost broke the resistance level at 1,500 points.

Nevertheless, the outlook remained positive, resulting in the index to remain high. The rise in the energy sector could drive the market higher. Meanwhile, regional markets slightly pulled back.

The analyst recommended investors to monitor the development of coronavirus cases in Thailand that could affect investment momentum for foreign investors, thus, giving a support level at 1,460 points and a resistance level at 1,500 points.

 

Last night, oil prices edged higher after data showed U.S. crude stockpiles declined last week. The U.S. Energy Information Administration (EIA) stated that U.S. crude inventories fell by one million barrels during the week ending January 29. Still, the U.S. is sitting at 475.7 million barrels in its inventories, which is 4% above its 5-year average for this period of the year.