Thai stocks are finding favor again as investors bet that an Anutin Charnvirakul-led government will bring an end to years of political turbulence, spurring foreign capital inflows.

The benchmark SET Index has rebounded sharply, erasing earlier losses and outperforming regional peers as global funds reposition toward Southeast Asia's second-largest economy. Market participants cite improving political clarity and the prospect of stable policy implementation as key catalysts.

Analysts note that sustained inflows will depend on the new administration's ability to deliver on economic stimulus promises and maintain fiscal discipline. The baht's strength and corporate earnings recovery provide additional support for the bullish outlook.

Foreign investors have turned net buyers of Thai stocks for the first time in months, with weekly inflows accelerating as risk appetite improves. The market's valuation discount relative to historical averages remains attractive, suggesting further upside if political stability holds.