Stocks in Asia Plunge Sharply after U.S. Bond Yield Surges to 1.57% over Fed’s Comment
Stocks in Asia Plunge Sharply after U.S. Bond Yield Surges to 1.57% over Fed’s Comment.
Stocks in Asia made a sharp plunge for the second time in a week, following a plummet in Wall Street after Fed’s Chairman Jerome Powell’s to not push back against a jump in bond yields. Treasury yields pushed higher to nearly 1.57%.
As of 9:18 local time in Thailand on Friday, Nikkei fell 1.89%, SSEC dropped 1.27%, HSI slipped 2.03%, ASX 200 dipped 1.11% and Kospi plunged 1.48%.
Last night, Dow Jones closed 345.95 points or 1.11% lower at 30,924.14 points. S&P 500 dropped 1.34% and the tech-heavy Nasdaq Composite fell 2.11%. Meanwhile, VIX Index gained 7.12% to 28.57 points.
Yesterday, SET Index closed at 1,534.11 points, decreased 9.29 points or 0.60% with a trading value of 108 billion baht.
Asia Wealth Securities (AWS) expected the SET today (5 Mar) to move within the range of 1,517-1,550 points. The stock market will be volatile from the pressure from the recovery of U.S. bond yields, including that China and the U.S. (Fed Chair) warned of faster-than-expected inflation hikes. However, there is still a downside limitation in the market with the increase in crude oil prices, giving us a positive view on energy stocks. AWS chose PTTEP, TOP, PTTGC and PTT.
The investment weight just speculating a new round and began to accumulate stocks, focusing on investing in groups with unique positive factors, especially the stocks that benefit from vaccines based on our core investment (Core Investment: Expectations for vaccines and economic stimulus measures).
Core Investment
1) Global Play (Trading within 1 month) – PTT, PTTEP, TOP, PTTGC and SCC
2) Green energy stocks (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG, EA and ACE
3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – BBL, KKP, BEM, CPF, TU, M, OSP, CPALL, HMPRO, CRC and CHG
4) Dividend Play (Middle-term trading 6-12 months) – SC, LH, QH, KKP, TISCO, RATCH, DIF, INTUCH, EASTW and TTW
5) Long term accumulative stocks (DCA) (Long-term trading over 1 year) – AOT, BEM, ADVANC, WHA, LH, CPALL, CPF, BDMS, HMPRO, BBL and KTB