THAI shares and the baht were set for their best week in more than six months on Friday, as last weekend's election stoked investor optimism about prospects for greater political stability, while regional currencies were largely muted.
The Thai baht has risen 1.8% this week, eyeing its biggest weekly gain since May, 2025. The baht’s sharp rally this week was driven by a decisive election outcome that eased fears of a political vacuum, drawing foreign investors back into local assets.
The Bhumjaithai Party’s victory further reinforced confidence in policy continuity and political stability, lifting both the currency and equities as markets priced in smoother budget approval and ongoing stimulus measures.
"Foreign investors have ramped up their investment in Thai equities since the election result, with total net inflows of about 33 billion baht ($1.06 billion)," said Poon Panichpibool, market strategist at Krung Thai Bank.
"Ongoing sideways movement in gold prices due to highly uncertain US-Iran tensions does provide some support for the baht as well."
Thai shares gained more than 6% this week, eyeing the best week since July 2025. On Friday, the index pared its early gains to trade 0.3% lower.
South Korean stocks jumped 1% to hit a record high. For the week, the index has risen nearly 9%, marking its best week since January 2021.
Singapore shares fell 1.3%, their steepest intraday decline since October 23. On Thursday, the city-state’s prime minister said Singapore expects to post a budget surplus of S$8.5 billion ($6.73 billion) in the current fiscal year.
"Singapore equities fell despite government support measures, likely reflecting a short-term reaction to US weakness," said Inki Cho, a strategist at Exness, but also struck an upbeat tone as he said certain plans could attract foreign inflows and underpin the market over the mid to long-term perspective.
For the week, stocks have gained 0.3% and are eyeing their eighth consecutive week of gains.
Other regional currencies traded in tight ranges ahead of key U.S. inflation data later in the day, which could set the tone for the dollar.
"Signs of cooling inflation could revive bets on rate cuts, lift U.S. equities, and spill over into Asian markets," Inki Cho added.
South Korean won and Indonesian rupiah shed 0.2% each, while Philippine peso rose 0.2%. Taiwan's stock market was closed on Friday for a holiday.
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** US, Taiwan finalise deal to cut tariffs, boost purchases of US goods
** China's new home prices extend decline as weak demand hounds sector
** Malaysia's economy grows 6.3% yr/yr in Q4, exceeding expectations - Reuters
