Southeast Asian stock markets joined others in rising on Thursday following upbeat manufacturing data from some nations that boosted hopes for global economic growth and spurred demand for regional big caps such as banks. Optimism about global recovery appeared to ease nagging concerns about the euro zone debt crisis, sending sharemarkets to fresh peaks.
The Philippine index hit an all-time high, while benchmarks for Singapore, Malaysia and Thailand reached their highest points in nearly six months. Jakarta's Composite Index ended up 1.3 percent on Thursday, moving close to around the six-month highs that it reached early last week.
"The European liquidity risks have been lowered along with global growth firming up. These serve to boost investors' confidence," said CIMB regional strategist Chang Chiou Yi. "In February and March, there's still euro debt repayments to be concerned with. So markets could remain choppy and see some profit-taking following the strong rebound we have seen thus far," she said.
The Philippine main index climbed 2.3 percent, its biggest daily gain in almost four months, led by a 2.7 percent gain in the second-biggest lender Metropolitan Bank and Trust Co Foreign funds pumped in $250 million of net money into Philippine stocks in January, according to Thomson Reuters data. They are expected to be net buyers in February too, traders said.
MSCI's index of Southeast Asia was up 1.34 percent by 0903 GMT in line with a 1.5 percent rise of MSCI's broadest index of Asia-Pacific shares outside Japan Banking shares were among the most actively traded on Thursday, catching up with recent gains in consumer stocks thanks to optimism that Southeast Asia will keep growing more quickly than others regions.
In Bangkok, banks gained 2 percent, outperforming the benchmark SET index which was up 0.8 percent by 0909 GMT. Optimism about demand for loans for post-flood rebuilding activities and efforts of Thai banks to offset a likely increase in levies on deposits lured buyers, brokers said.
Late last month, Thai banks reported lower-than-expected fourth-quarter results partly due to flood-related costs. Late profit-taking wiped out gains at Singapore's three big banks, all of which were up more than 1 percent early in the day. DBS Group Holdings Ltd ended down 1.3 percent, United Overseas Bank Ltd eased 0.3 percent and OCBC fell 0.7 percent. Singapore banks have gained more than most regional banks this year. DBS, which will report fourth quarter results next week, has gained 16 percent in 2012.
The stock's resurgence "may be tempered by what looks like a weak fourth quarter estimated result," broker Citi said in a research note dated February 2 "Recent positive macro data remains supportive of valuations barring any 'risk-off' event in Europe, but with expectations of a slow start to 2012 GDP, it may not be smooth sailing."
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