Asia Stocks Trade Lower in Fear of Inflation after U.S. Bonds Spike to 1.71%

Stocks in Asia traded lower on Friday as investors were cautious after bond yield signaled for a fast economic recovery with an uptick to 1.71% for 10-year bonds, causing fears of inflation to grow.


As of 9:39 local time in Thailand, Nikkei fell 0.83%, SSEC dropped 1.02%, HSI plunged 1.39%, ASX 200 dipped 0.26% and Kospi slipped 1.09%.

Over the night, Dow Jones dropped 0.46%, S&P 500 fell 1.48% and Nasdaq plunged 3.02% as tech drought continued.

Yesterday, SET Index closed at 1,568.82 points, increased 2.06 points or 0.13% with a trading value of 81 billion baht.


Asia Wealth Securities (AWS) expected the SET today to move in a range of 1,548-1,582 points, the factors that depress the overall investment today are (1) The recovery of U.S. bond yield due to inflation concerns (2) Significantly adjusted crude oil prices and (3) The COVID-19 situation that still have an epidemic, including delayed vaccination and continued to implement a lock-down measure policy, especially in Europe.

For investment strategy, in the short-term, AWS recommended only speculation on stocks with unique positive factors by weighting the cash in the portfolio at a proportion of 50%, AWS remained wary of risk factors that still exist. This will also give the market a chance to fluctuate during the rest of March and April.


Core Investment

1) Global Play (Trading within 1 month) – PTT, PTTEP, TOP, PTTGC and SCC

2) Obtained benefit from the decreasing in bond yield (Trading within 3-6 months) – GPSC, EGCO, GULF, BGRIM, BPP, BCPG and ACE

3) Expectations for the vaccine and increased stimulus measures (Trading for 3-6 months) – CPALL, AOT, AAV, ERW, BDMS, CHG, AMATA and WHA.

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

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