Most Southeast Asian markets rose on Tuesday, with a tax cut plan by Indonesia helping stocks rebound from the biggest one-day loss in seven weeks, while Thailand had its best day since March 30 ahead of a long holiday. Leading the regional market, Thailand rose 1.1 percent in light trading, led by airport operator Airports of Thailand Pcl that climbed 1.6 percent.
KT ZMICO Securities in Bangkok said Airports of Thailand sees passenger volumes for April 1-9, ahead of the big Songkran (New Year) Festival, rise 12 percent from a year ago. Shares of heavyweight energy company PTT Pcl rose as much as 1.4 percent to touch their highest since March 30 before settling 0.7 percent higher. Oil reached a 2016 high above $43 a barrel on Tuesday, supported by hopes that an upcoming meeting of oil producers will agree steps to tackle a supply glut, and by a weak US dollar and further signs of strong demand in China.
Thailand's stock market will be closed on Wednesday through rest of the week for the Songkran Festival. Indonesia's Jakarta Composite Index, which hit a two-week low on Monday, rose 0.9 percent. The gains came on the back of positive domestic sentiment, Trimegah Securities said in Jakarta. "These positive sentiments are, first, the government plan to reduce corporate tax rate to 20 percent; second, government proposed non-taxable income ceiling to be increased," it said in a note on Tuesday.
Indonesia plans to cut tax rates on corporate profits in an upcoming revision of the income tax law, possibly bringing down the rate for companies by 5 percentage points, the finance minister told lawmakers on Monday. Meanwhile, on Tuesday, the Indonesian parliament started discussion on a tax amnesty bill that may bring in undeclared assets stashed overseas. Indonesia's automotive company PT Astra International Tbk bounced from its lowest in a month to climb 3.9 percent, its best single-day percentage gain since February 26. Singapore and the Philippines each gained 0.2 percent, while the Malaysian index posted a slim loss.
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