Southeast Asian stock markets gained on Monday in thin trade as foreign buyers' appetite for risky assets rose after Sunday's eurozone crisis summit and signs of Chinese recovery amid positive earning hopes. Indonesia, Asia's best performer so far for the year, and Singapore hit one-week highs, gaining 2.4 percent and 1.8 percent respectively.
Malaysia, the Philippines and Vietnam rose 0.8 percent each. Investors were giving the benefit of the doubts to Europe leaders who neared an agreement on bank re-capitalisation and the use of European Financial Stability Facility (EFSF) to stave off a bond market contagion.
"I think investors are really believing that a turnaround is under way," said Singapore-based CIMB-GK Research's Regional Economist Song Seng Wun. Kuala Lumpur enjoyed a net foreign inflow of $66.2 million, Jakarta saw a net foreign selling of $45.9 million, and Manila witnessed an offshore inflow of $2.8 million.
Thailand was closed on Monday for a public holiday. Except Jakarta, all other markets saw light trading volumes ranging from 40-85 percent of their respective 30-day daily average. Financials helped the region's gain with Indonesian banks leading with the country's top lender Bank Mandiri surging 7 percent and No 3 lender Bank Central Asia, which after the market posted a 42 percent profit growth in its September quarter year-on-year, rising 3.9 percent. In Singapore, banks along with rig-makers and resources led market gains with rig builders Keppel Corp and Sembcorp Marine rising 2.7 percent and 4.5 percent respectively. Singapore lender DBS ended 2.5 percent firmer and Oversea-Chinese Banking Corp and United Overseas Bank gained 3.4 percent and 2 percent respectively.
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