Some Southeast Asian stock markets rose on Wednesday as worries about eurozone debt and the global economic recovery subsided, but Singapore and Indonesia retreated. European governments have agreed in principle to help heavily indebted Greece, a senior German coalition source said, in what would be the first rescue of a eurozone member in the currency's 11-year history.
"Broader sentiment was lifted as markets are hopeful that there will be some kind of positive resolution to Greece's problem," said Anupon Sriard, an analyst with BFIT Securities in Bangkok. But he added: "This could be just another knee-jerk reaction with the rally not being sustained for long, unless we see volume pick up substantially over the long term."
Thailand gained 0.4 percent, while Malaysia rose 1 percent. The Philippines and Vietnam gained 2.1 percent and 1.7 percent respectively. But Singapore's Straits Times Index fell 0.4 percent, led by banking shares, with top lender DBS Group falling 1.5 percent and United Overseas Bank 1.9 percent.
The MSCI index of Asia Pacific stocks traded outside Japan was up 2.1 percent at 0954 GMT. Malaysia rose, led by Malayan Banking Bhd (Maybank) with a 1.8 percent gain after the country's top lender posted a 35 percent rise in net profit a day earlier.
The Thai index was led higher by energy share PTT Exploration and Production, up 1.2 percent. The Thai government is bracing for a new round of protests in Bangkok by supporters of former premier Thaksin Shinawatra ahead of a February 26 Supreme Court verdict on whether to confiscate $2.3 billion of his family's assets. Indonesia lost 0.2 percent, with the country's largest coal producer by market value, PT Adaro Energy Tbk, sliding 2.2 percent.
Banking shares drove the Philippines 2.1 percent up from a four-month low, with Bank of the Philippine Islands gaining 5 percent and Manila Metro Bank rising 4.1 percent. Vietnam gained 1.7 percent, led by 5 percent rise in Vinamilk on high foreign demand and a 2.1 percent gain in Vietcombank.
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