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Southeast Asian stock markets ended firmer on Friday after the Bank of Japan shocked financial markets by adopting a negative interest rate to maintain business confidence and revive a deflationary mindset, and as global crude oil prices gained. In a 5-4 vote, the Japanese central bank decided to charge 0.1 percent interest on current accounts that financial institutions hold at the BoJ, and said it would cut interest rates further into negative territory if judged necessary.
Singapore, the worst regional performer, jumped 2.6 percent to close at its highest level since January 19, led by financials, while Malaysia surged 2 percent to a more than three-week high. The Philippine share index jumped 1.9 percent to a more than three-week high, Thailand ended 1 percent firmer. Teerada Charnyingyong, an analyst with Phillip Capital in Bangkok, said bullish sentiment drove the markets. Vietnam's benchmark VN Index rose on Friday, posting its first weekly gain in four weeks, buoyed by advances in energy stocks as global oil prices rallied. PetroVietnam Gas led the market, climbing 6.81 percent to the highest level so far this year, while PetroVietnam Drilling & Well Services Corp soared 6.98 percent to a more than two-week high. As many as 122.9 million shares changed hand, compared with the five-day average of 133.5 million.

Copyright Reuters, 2016

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