Indonesia's main share index climbed to a fresh all-time high on Wednesday as investors sought bargains from resource-related shares just as regional equities remained wary of a spate of worrying US economic data. Cautious investors cut positions in overbought markets, lopping 0.6 percent each off Thai stocks and Malaysian shares.
Economic optimism had pushed the Thai index to a 33-month high and Malaysia's index to a 2-1/2 year high. Thailand's central bank raised interest rates by 25 basis points for the second straight month on Wednesday, citing growing inflation and faster-than-expected growth in Thailand, Southeast Asia's second-biggest economy.
The Jakarta Composite Index ended 0.8 percent higher at 3,138.91, just shy of a record 3,145.11 the previous session. Asia's second-best performing bourse gained small inflows of $8.9 million on the session, Thomson Reuters data showed. Indonesia's economic outlook pointed to further market gains, according to John Teja, director at Jakarta-based Ciptadana Securities. He pegged a short-term target for Indonesia's main index at 3,200. Coal miner PT Bumi Resources Tbk surged 11.6 percent while integrated energy company PT Medco Energi Internasional Tbk gained 2.4 percent. Singapore gained 0.1 percent, reversing its early loss to a one-month low and ended its three-day loss. The Philippines gained 0.7 percent while Vietnam dropped 2.4 percent, extending losses for a third session and hitting its lowest since July 23, 2009.
Vietnam's loss reflected in part concerns over a potential further devaluation of local currency. In Bangkok, state-controlled PTT Exploration and Production Plc ended down 0.4 percent.
In Bangkok, the SET index's 14-day relative strength index (RSI) closed at 68.08, falling from 74.5 Tuesday. Malaysia's 14-day RSI was at 71.69 at the close. An RSI level of 70 and higher indicates the market is overbought.
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