The Thai stock market skyrocketed past 1,350 points on positive sentiment that the US government will inject billions into the economy to keep the recovery's momentum.
Investors are also optimistic as Spain received a fresh batch of rescue aid from the EU yesterday to solve its financial crisis.
Asian markets shrugged off news of North Korea's successful rocket launch.
The Stock Exchange of Thailand closed yesterday at 1,354.57 points, up by 0.99%, in trade worth 43.5 billion baht.
Foreign investors were net buyers of 4.38 billion baht, local institutions net buyers of 151 million, individual investors net sellers of 3.64 billion and proprietary traders net sellers of 903 million.
Beauty Community Plc, the cosmetics operator, recorded its first day of trading on the SET by rising 101% to close at 16.10 baht after an initial public offering of eight baht a share, in heavy trading worth 2.98 billion baht.
SET president Charamporn Jotikasthira said the index marked a 16-year high at the close yesterday. Other Asian markets rose between 0.5% and 0.8%.
One positive factor was the MSCI increasing the number of Thai stocks in its Global Standard Indices. Perceived improvement in the US and European economies, with easing tension about the US fiscal cliff, were also positive factors for the SET.
Sukit Udomsirikul, the managing director for research at MayBank Kim Eng Securities, said the US Federal Reserve will likely extend its quantitative easing programme and may inject $40 billion into the economy to buy long-term bonds.
Mr Sukit said North Korea's successful rocket launch did not deter Asian markets.
"Investors did not see it as a risk," he said.
Kavee Chukitkasem, assistant managing director at Kasikorn Securities, said with the index passing the strong resistance point of 1,350 points _ a main target for 2012 _ investors must look at price-per-earnings ratios next year.
He said the markets believe that the global financial crisis has passed its nadir and a recovery has begun even though it will be a long-term mission, while Asia will remain the main destination for inflows.