Most Southeast Asian stock markets ended higher on Friday, recovering early losses and extending their rally to a fourth week, as investors hoped for a successful conclusion to Greek debt talks and awaited data which is expected to show more strength in the US economy.
Despite concerns about the European debt crisis, investors have been optimistic on riskier, emerging market assets in Asia so far this year, pushing the Singapore market up more than 10 percent and the Philippines up 7 percent. Regional analysts said the rally can be sustained as the markets have factored in a lot of bad news about Europe and uncertainty about the US recovery. "Markets can sustain this rally next week and in the future as well, as we see strong earnings," said Manila-based Accord Capital Equities analyst Justino Calaycay.
"This could continue at least until March as we will get a clear picture on a Greece debt default by that time. So the key issue now is Greece debt." Greece and its private creditors remain locked in talks on debt restructuring. Athens needs a deal quickly to avert a potentially chaotic default. On Friday, both Thailand and Singapore rose to near five-month highs, each gaining more than 0.7 percent, while the Philippines surged 1.5 percent, snapping a three-day losing streak.
Bangkok saw a foreign inflow of $15.9 million on Friday. Indonesia edged up 0.1 percent despite suffering further foreign outflows, while Malaysia bucked the trend, easing 0.2 percent with an offshore outflow of $18.9 million. The US GDP data due later on Friday was expected to show the economy likely grew at its fastest pace in nearly two years at the end of 2011, buoying prospects for Asian export-reliant economies and offsetting some of the impact from weak demand in Europe.
In Singapore, Shares of Keppel Corp, the world's largest rig builder, gained 0.8 percent as the company reported a 11 percent rise in fourth quarter net profit. Singapore-listed forestry firm United Fiber System Ltd closed 39.3 percent higher, after surging 71 percent at one point in the early trade on Friday, after announcing it was doing a S$1.5 billion reverse take-over deal with Indonesian coal miner PT Golden Energy Mines Tbk to refocus its business on coal mining. Commodities led by energy helped Bangkok index to touch its highest close since August 18, with top oil firm PTT adding 1.5 percent.
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