SET jumps 28.35 to 1,614.14

The Stock Exchange of Thailand main index bucked regional trends on Tuesday, advancing 1.79%, or 28.35 points, to a two-year high at 1,614.14.

Total trading value was 95.6 billion baht, with 13.9 billion shares changed hands.

SET50 index retreated 2.39%, or 24.19 points, to 1,034.76 in trade worth 72.8 billion baht.

MAI climbed 0.04%, or 0.21 points, to 544.48 in transactions worth 1.6 billion baht.

The gains on the index were broad-based, with energy and financials stocks leading. 

Institutional investors bought a net 5.2 billion baht, followed by foreigners (4.8 billion) and brokers (2.3 billion). Individual investors sold 12.4 billion baht. 

Year-to-date, institutional investors were net buyers of 63.8 billion baht, followed by foreigners (159.9 million). Individual investors sold 62.5 billion baht, followed by brokers 1.4 billion). 

Optimism came after the central bank said there was no need at present to introduce capital controls or additional measures to curb the baht's strength.

This, along with easing political tensions after ousted prime minister Yingluck Shinawatra fled the country ahead of a ruling against her in a negligence trial, were the main reasons for the market rally, said Teerada Charnyingyong, a strategist at Phillip Capital Thailand.

Concerns over political-related violence have eased, CLSA Ltd country head Prinn Panitchpakdi said in an interview with Bloomberg. “Some foreign investors were really concerned that fighting might erupt after the court ruling,” he said. “Now they turn their attention on Thailand’s economic fundamentals.”

Gold prices in Bangkok surged by a net 350 baht per baht-weight on Tuesday.

The Gold Traders Association announced the buying price at 20,650 baht and the selling price at 20,750 baht per baht-weight for bullion. For ornaments, the buying and selling prices were 20,284.08 baht and 21,250 baht per baht-weight respectively.

The prices were changed four times on Tuesday, indicating high volatility.

Elsewhere in Asia, stocks were lower on Tuesday as risk appetite took a hit after North Korea fired a missile that flew over Japan, sharply escalating tensions on the Korean peninsula and prompting investors to seek safer assets.

The test of the missile, which landed in waters off the northern region of Hokkaido early on Tuesday, was one of the most provocative ever from the reclusive state and came as US and South Korean forces conduct annual military exercises on the peninsula.

World stocks slipped while safe-haven assets jumped, with gold prices hitting over nine-month highs and the Japanese yen at its highest in more than four months against the dollar.

In Southeast Asia, the Singapore index ended 0.6% lower, hurt by financials and telecom stocks. Oversea-Chinese Banking Corporation Ltd ended 0.5% lower, while Singapore Telecommunications Ltd closed at its lowest in nearly nine months.

"Bank stocks are weakening on [US Federal Reserve chair] Yellen's speech last Friday, as the odds of an interest rate hike in December have dropped and investors are pricing in a less steep yield curve going forward, which implies that net interest margins at banks will not rise as rapidly as previously expected," said Liu Jinshu, director of research at NRA Capital.

Philippine stocks hit a more than two-week closing low on weaker industrial and real estate stocks. Conglomerate SM Investments Corp hit a more than three-week closing low, while Ayala Land Inc ended 1.4% lower.