Thai stocks continued their bull run on Friday, rising 0.85% on strong foreign buying and generally upbeat economic sentiment across Asia.
The Stock Exchange of Thailand Index gained 12.32 points to close at 1,461.41, an increase of 2% from the previous Friday's close of 1,434.44. Turnover was 55.2 billion baht, with 20.94 billion shares traded.
The local market is already up 5% from the end of 2012.
Foreign investors were net buyers on Friday of 1.56 billion baht worth of Thai shares. Local institutions were net buyers of 1.32 billion baht and brokers bought 7.5 million. Individual investors were net sellers of 2.9 billion baht.
For the year to date, foreign investors have bought 15.44 billion baht more in Thai shares than they have sold. They account for 20% of total turnover on the SET, which has averaged more than 50 billion baht since the start of the year, compared with about 32 billion in 2012.
Elsewhere, Japan's stock market hit a 32-month high as the yen continued to retreat against the dollar and investors cheered the new government's plans to spur the economy. Other stock markets edged up.
The Nikkei surged 2.9% to 10,926.65, its highest close since April 30, 2010.
In Tokyo, markets are responding to the campaign by Prime Minister Shinzo Abe to do more to end Japan's prolonged spell of deflation and revive the moribund economy. Analysts expect the Bank of Japan to do its part by attempting to "engineer" inflation through monetary stimulus.
European stocks were mixed in early trade. Britain's FTSE 100 fell 0.1% but Germany's DAX rose 0.2% and France's was up less than 0.1%. Wall Street appeared headed for gains, with Dow futures 0.2% higher at 13,806 and S&P 500 futures gaining 0.2% to 1,494.20.
In other Asian markets, South Korea's Kospi fell 1% to 1,943.97 amid fears that exporters could be hurt by Japan's dropping yen. Hong Kong's Hang Seng lost 0.1% to 23,580.43. Australia's S&P/ASX 200 rose 0.5% to 4,835.20. The Shanghai Composite Index fell 0.5% to 2,291.30 and the smaller Shenzhen Composite Index lost 0.2% at 909.52.
In Bangkok, the SET50 index of blue chips ended at 977.53 points, up 7.72 points, with total trade value of 30.24 billion baht. The SETHD index of high-dividend shares rose 9.35 points to 1,258.28, with turnover of 13.3 billion baht. The Market for Alternative Investment gained 1.90 points to 453.22, with transaction value of 2.19 billion baht.
The five most active shares by value were the contractor Italian-Thai Development (ITD), rising 45 satang to 5.85 baht; Bangkok Bank (BBL), up 7.50 to 202 baht; Thanachart Capital (TCAP), up 1.75 to 40.50 baht; the Skytrain operator BTS, up 25 satang to 7.75 baht; and TMB Bank, unchanged at 2.20
In the currency markets, the baht had its biggest weekly loss since June, snapping a seven-week rally, as concern mounted about the impact of strong baht on exports, which account for nearly 70% of the Thai economy.
The baht had climbed to a 17-month high versus the dollar and a four-year high against the yen before easing back this week. It was trading late Friday in Bangkok at 29.90/92 to the dollar, compared with 29.78.81 on Thursday and 29.74/76 a week earlier. The currency has appreciated by about 1.2% this year after gaining 3.1% in 2012.
Finance Minister Kittiratt Na-Ranong said on Thursday that he would like to see the baht a little bit weaker as appreciation was putting pressure on exporters.
"The authorities are getting more uncomfortable with sharp appreciation against the dollar and the yen," said Wee-Khoon Chong, a strategist at Societe Generale in Hong Kong.
The dollar value of Thai exports rose 13% in December from the same month a year earlier, after an increase of 27% in November.