Most Southeast Asian stock markets rose on Thursday after the US Federal Reserve abandoned rate hike projections for this year, while concerns over Sino-US trade talks and slowing global growth weighed on the market. Having downgraded their US growth, unemployment and inflation forecasts, policymakers said the Fed's benchmark overnight interest rate, or fed funds rate, was likely to remain at the current level of between 2.25 percent and 2.50 percent at least through this year.
Meanwhile, US President Donald Trump warned on Wednesday that the United States may leave tariffs on Chinese goods for a "substantial period" to ensure that Beijing complies with any trade agreement. Philippine shares led gains in Southeast Asia with a rise of 1.2 percent to a more than three-week closing high
Industrials were the top boosts with JG Summit Holding Inc gaining 7.1 percent to its highest close in more than a week. The Philippine central bank kept its benchmark interest rate steady for a third straight meeting.
Thai shares gained 0.4 percent, helped by energy and telecom stocks, after a surprise rise in February exports. Customs-cleared exports rose 5.91 percent from a year earlier, snapping three consecutive months of falls. A Reuters poll had forecast a 1 percent drop.
Indonesian shares rose 0.3 percent, helped by materials and property stocks. Indonesia's central bank, welcoming the Federal Reserve's forecast of no US rate hikes this year, kept its benchmark on hold to maintain financial stability while tweaking some rules to try to encourage more lending. Meanwhile, Vietnam shares were the worst performers in the region, shedding 2.05 percent to their lowest close in 10 days.
Real estate stocks were the top losers with Vinhomes JSC and Vingroup JSC dropping 4.3 percent and 2.7 percent, respectively. Malaysian shares closed 1.2 percent lower, dragged by financial and consumer stocks. Public Bank Bhd fell 2.5 percent, while Sime Darby Plantation Bhd lost 1.8 percent. Investors now await February inflation data due on Friday for clues about the economy. A Reuters poll showed consumer prices are expected to fall again in February, but at a slower rate than the previous month.
Comments
Comments are closed.