Most Southeast Asian stock markets edged higher in light volume on Monday, but caution remained over the outlook for the US economic recovery and some markets such as Indonesian and Malaysia were unable to hold on to their gains. With weakness elsewhere in Asia and holidays in the United States and Britain on Monday, turnover in Singapore, Indonesia and the Philippines fell to just two-thirds of the 30-day average.
--- Thai banks advance amid rate rise expectations
--- Region's big caps pull back in subdued session
However, some markets took in more foreign inflows, building on the net inflows seen last week, led by Malaysia's $39 million and the Philippines' $6.8 million, according to Thomson Reuters and stock exchange data. Singapore's benchmark Straits Times Index inched up 0.2 percent and Thailand's main SET index gained 0.8 percent. Earnings hopes boosted selected Thai energy counters, pushing top refiner Thai Oil more than 3 percent higher. Thai banks gained on expectations they would raise interest rates in line with the Bank of Thailand this week.
"Thai banks have gained for some time on the MPC rate hike expectations," said Pichai Lertsupongkij, head of Thanachart Securities investment advisory business in Bangkok. "The Thai market trend remained weak, a similar direction to global stocks as threats from European debt problems and the US economic outlook are still there," he said.
Leader Bangkok Bank rose 0.6 percent and number four Kasikornbank gained 1.2 percent.
The Bank of Thailand's Monetary Policy Committee is expected to raise its benchmark interest rate by a quarter of a point to 3 percent on Wednesday. Elsewhere, Malaysia's largest lender, Malayan Banking Bhd , inched down 0.1 percent and Adaro Energy , Indonesia's second-biggest coal miner, fell 1 percent. Southeast Asian stock indexes hovered around one-week highs in early trade on Monday. Stocks in the Philippines and Vietnam edged higher by the close but Malaysia and Indonesia came off the highs to fall on the day, dragged down by selling in big-caps.
Asian stocks in general were pinned in tight trading ranges as weak US economic data and fears of a Greek debt default kept many investors on the sidelines. The MSCI index for Southeast Asia rose 0.3 percent by 0941 GMT, while the MSCI index of Asia Pacific stocks outside Japan was flat.
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