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Indonesia stocks lead Southeast Asia markets
Most Southeast Asian stock markets ended higher on Wednesday, in line with broader Asia, with Indonesia gaining nearly 1% and the Philippines ending at a near three-week high.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6%, as relative calm in the standoff between the United States and North Korea lifted investors’ appetite for riskier assets.
Markets are also awaiting the minutes of the US Federal Reserve’s latest meeting due on Wednesday.
Philippine shares rose 0.5%, marking their third straight session of gains, supported by consumer discretionary and real estate stocks.
Jollibee Foods Corp extended gains, rising 6.2%, while Megaworld Corp ended 1.6% higher.
“There was quite a panic a few days ago when an IPO (Chelsea Logistics Holdings) went under the offering price and so other issues got affected as well. But now I think it has been coming back slowly, bargain hunting is starting to pick up again,” said Joseph Roxas, president of Manila-based Eagle Equities Inc.
Investors in the Philippines are awaiting the quarterly GDP data due Thursday.
Philippines’ economic growth is expected to have accelerated in the second quarter, on higher government spending, resilient domestic demand and a solid pickup in farm output, a Reuters poll showed.
Meanwhile, Singapore shares ended down 0.5% at its lowest since July 13, with financials accounting for most of the losses. Top lenders DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank posted losses in the range of 1.4% to 2%.
“The interest rates have not really been rising as much as people are expecting, so that will definitely impact the interest margin going forward,” said Joel NG, an analyst with KGI Securities in Singapore.
“Another reason has also been that many of the oil and gas companies are now having huge writedowns on their assets. I think that is also affecting the banks somewhat.”
Singapore’s offshore and marine industry has been hit by low oil prices, weak charter rates and delays to projects, forcing many firms to restructure debt and cut costs.
Source: http://www.bangkokpost.com/business/world/1307324/indonesia-stocks-lead-southeast-asia-markets