Bangkok: Capital markets are closely monitoring the 2016 budget's progression through parliament, which is alleviating concerns about political conflicts. Simultaneously, Asian stocks have risen in tandem with the Dow Jones, contributing to a rebound in Thai stocks. According to Thai News Agency, the Stock Exchange of Thailand index saw an upward movement this morning. By 10:16 am, the index increased by 3.45 points, reaching 1,166.87 points. Mr. Kraphat Vorachet, Assistant Managing Director of Krungsri Securities, indicated that the Thai stock market is following the upward trend of both Asian and US stocks. This rise is attributed to the US postponing a 50% tax increase date on the European Union, alongside positive influences from adjustments in US government bond yields, with notable decreases in both 10-year and 30-year bond yields. Regarding Thai politics, the market is observing the coalition parties' conflicts as the House of Representatives deliberates the 2016 annual budget from May 28 to May 30. The expectation is that the budget will pass, suggesting short-term political stability and reduced conflict concerns. Additionally, MSCI's adjustment of Thai stocks' weight is anticipated to cause short-term volatility, yet the market appears to have already absorbed this information. Investors are advised to focus on stocks benefiting from the domestic economy and decreasing interest rates, such as those in the power plant and finance sectors. Hospital stocks are also expected to gain due to the resurgence of COVID-19. Mr. Kraphat further recommended that investment diversification in emerging markets continues due to the weak dollar and Asian economies' low inflation. He emphasized the need for further monetary policy loosening to support the economy's next phase, advising a 'Buy on Dip' strategy for Thai stocks.