Indonesian shares rose 1.7 percent to snap a three-day losing streak on Wednesday as fears over inflation eased, while strong growth in emerging Southeast Asian economies supported other markets in the region. Annual inflation in Indonesia, Southeast Asia's biggest economy, was lower than expected in August, cementing expectations the central bank will hold interest rates at a record low at a policy review on Friday.
-- Malaysia at 2-1/2-year high, Indonesia bounces back
The statistics bureau said inflationary pressures were expected to ease in coming months. Jakarta's benchmark share index bounced off a two-week low hit the previous day, recording $13.55 million in net inflows on the day and erasing part of the $19.2 million in outflows from the day before, Thomson Reuters data showed.
Investor piled into recently beaten big-caps, pushing the biggest firm and dominant car seller PT Astra International 3.8 percent higher and sttae telecoms firm PT Telekomunikasi Indonesia up 4.1 percent. Asian stocks in general rose on Wednesday as investors cheered a manufacturing rebound in China and better-than-expected Australian growth, which halted the yen's advance towards a 15-year peak against the dollar.
The MSCI index of Asia Pacific stocks outside Japan rose 1.5 percent, led by commodity-related shares. The MSCI Asia index is still down about 3.8 percent so far this year, but that compares with a 6.8 drop on the MSCI world-wide index, underscoring Asia's resilience. Southeast Asia was among outperformers, led by a 17.99 percent gain on the year in MSCI Thailand.
The Thai stock market, Asia's second-best performer this year, has seen net inflows of 5.4 billion baht ($173 million) over the past three sessions. Singapore closed at the day's high, adding 1.1 percent to a three-week high. Malaysia, resuming trade after a holiday, rose 0.7 percent to a 2-1/2-year high and Thailand gained 0.7 percent, scaling a 14-year high at one point. The Philippines rose for a second day, adding 0.76 percent, while Vietnam gained 0.8 percent to a two-week high.
Bangkok-based analyst Charoen Iampathanatham at KT Seamico Securities expected profit-taking in overbought Thai stocks in coming sessions. "Strong buying interest in big-cap banks and top energy firm PTT helped cushion selling in medium- to small-caps today. It's more likely that investors may seek to limit downside risks as the index is now near a end-year target of 920-930," he said. Among gainers on the day, PTT Plc, the biggest listed Thai firm and the country's largest energy firm, rose 2.3 percent and the third-biggest bank, Kasikornbank, climbed 4.6 percent.
Comments
Comments are closed.