Asian investors await China stimulus news

RECAP: Asian equities pared an earlier advance yesterday as investors awaited the outcome of a key legislature meeting in China that is expected to approve more policy support to boost flagging growth.
The SET index moved in a range of 1,458.34 and 1,487.58 points this week, before closing on Friday at 1,464.69, unchanged from the previous week, with daily turnover averaging 47.14 billion baht.
Institutional investors were net buyers of 2.86 billion baht, followed by retail investors at 143.11 million. Foreign investors were net sellers of 2.06 billion baht, followed by brokerage firms at 947.90 million.
NEWSMAKERS: The US Federal Reserve cut its key interest rate by another 25 basis points as expected, though the election of Donald Trump has led to reduced expectations for how much further rates will fall. Fed chairman Jerome Powell stressed, however, that policy decisions will depend on economic data, and the Fed won’t try to anticipate fiscal or trade policy.
COMING UP: On Monday, the latest Japan Economy Watchers index will be released. Tuesday brings German inflation, UK unemployment and the monthly Opec oil market report. On Wednesday, the US and Russia will announce October inflation and Australia will update unemployment data.
STOCKS TO WATCH: InnovestX Securities recommends stocks with high dividend yield and expected to be targets of the Vayupak Fund and tax-deductible funds. Such stocks usually have three characteristics: dividend yield of at least 3.5%, high SET ESG and corporate governance ratings, and earnings expected to grow. Interesting stocks are BBL, ADVANC, HMPRO and BCP. Look to buy on dips as prices have already moved up. Stocks benefiting from a weakening baht in the short term are TU and AOT.
TECHNICAL VIEW: InnovestX Securities sees support at 1,450 points and resistance at 1,487. Kasikorn Securities sees support at 1,450 and resistance at 1,500.