The Stock Exchange of Thailand pushed back above 1,300 on Friday amid an improving outlook for the world economy and emerging markets.
The SET Index rose 8.61 points on the day to close at 1,306.60, up 2.1% from the previous Friday's close of 1,281.81. Turnover improved to 38.43 billion baht, with 6.74 billion shares traded.
Foreign investors were net buyers on Friday of 539.1 million baht worth of Thai shares. Local brokers bought 882.23 million and local institutions 910.25 million baht, while individual investors were net sellers of 2.33 billion.
World markets responded positively to reports that Chinese manufacturing expanded for the first time in three months. Taiwan released figures that showed its economy returned to growth in the third quarter, while US factory production increased at a faster pace than forecast in October and consumer confidence reached a four-year high.
"There's optimism about the global economic recovery and that improves risk sentiment," said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo. "That is encouraging fund inflows into Asia and supporting the regions stocks and currencies."
Japan's Nikkei 225 index advanced 1.2% to close at 9,051.22. Hong Kong's Hang Seng rose 1.3% to 22,111.33 and South Korea's Kospi gained 1.1% to 1,918.72. Australia's S&P/ASX200 inched up to 4,460.10. Benchmark indices in Singapore and Taiwan and mainland China also rose.
However, European markets opened lower on Friday as investors treaded cautiously ahead of a US October jobs report.
In Bangkok, the SET50 index of blue chips ended at 883.54 points, up 6.83 points, with total trade value of 25.29 billion baht. The SETHD index of high-dividend shares rose 11.79 points to 1,158, with turnover of 9.28 billion baht. The Market for Alternative Investment fell 0.56 points to 387.34, with transaction value of 1.56 billion baht.
The five most active shares by value were mobile market leader Advanced Info Service (ADVANC), down 6 baht to 186; PTT, up 1 baht to 319; Siam Cement (SCC), up 13 baht to 402; 7-Eleven operator CP ALL, up 0.75 to 40.75; and the cement maker TPI Polene (TPIPL), up 1.10 top 16.10 baht.
In the debt market, Thai government bonds had a sixth weekly advance, the longest stretch in a year, as global funds increased holdings amid speculation the central bank would lower borrowing costs. The baht declined slightly.
Inflation slowed last month to 3.32% from 3.38% in September, official data showed, even as the Bank of Thailand unexpectedly cut its policy rate by a quarter point to 2.75%.
"Funds are flowing into Asia recently amid improving risk sentiment," said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo.
"In Thailand, bonds attract more funds than stocks, especially as [the central bank] just cut rates while economic outlooks remain weak."
The yield on the 3.625% note due in May 2015 fell seven basis points this week to 2.86%, the lowest since Dec 14, 2011.
The baht was trading late Friday in Bangkok at 30.73 to the dollar, compared with 30.66/69 on Thursday and 30.70/76 the previous Friday.