Thai shares, baht set for best week since mid-2025 on election optimism

BENGALURU: Thai stocks, as well as the baht, were headed for their best week in more than six months on Friday after last weekend’s election boosted hopes for greater political stability, while regional currencies traded slightly lower.

The baht has risen 1.8 percent this week, on track for its biggest weekly gain since May 2025.

A decisive election outcome eased fears of a political vacuum and drew foreign investors back into local assets, driving the currency’s rally.

The Bhumjaithai Party’s victory further reinforced confidence in policy continuity and political stability, lifting both the currency and equities.

“Foreign investors have ramped up their investment in Thai equities since the election result, with total net inflows of about 33 billion baht (USD1.06 billion),” said Poon Panichpibool, market strategist at Krung Thai Bank.

Thai shares gained 5.6 percent this week, eyeing the best week since July 2025. On Friday, the index pared its early gains to trade 0.3 percent lower.

South Korean stocks jumped as much as 1.1 percent to hit a record high, but pared their gains to close 0.3 percent lower. For the week, the index has risen just over 8 percent, marking its best week since January 2021.

Singapore shares fell 1.3 percent, their steepest intraday decline since October 23, a day after the city-state’s prime minister said Singapore expects to post a budget surplus of SD8.5 billion (USD6.73 billion) in the current fiscal year.

For the week, stocks have gained 0.3 percent set for their eighth consecutive week of gains.

Regional currencies depreciated slightly ahead of key US inflation data later in the day, which could set the tone for the dollar.