Southeast Asian stock markets closed higher on Wednesday on a larger-than-expected economic stimulus package from Japan, and ahead of the outcome of the US Federal Reserve policy meeting later in the day. Japanese Prime Minister Shinzo Abe unveiled a stimulus package of more than 28 trillion yen ($265 billion), exceeding initial estimates of around 20 trillion yen.
"The hope of stimulus from Japan had diminished a couple of weeks back, but recent reports on the likelihood of one have got the markets upbeat again," said Manny Cruz, an analyst with Manila-based Asiasec Equities. The Fed is expected to leave interest rates unchanged when it concludes its meeting on Wednesday as policymakers hold out for more evidence of a pickup in inflation.
Vietnam shares closed 1.2 percent higher, driven by energy and financials, on encouraging July industrial production data and as the country expects to post a trade surplus in July against a deficit in June. Petrovietnam Gas Joint Stock Corp and PetroVietnam Drilling & Well Service Corp gained 2.5 percent and 1.6 percent respectively. Indonesia finished 1 percent up, its highest close in more than 14 months. Financials and utilities led the gains, with Bank Central Asia Tbk PT up 1.9 percent while Perusahaan Gas Negara Tbk PT added 5.1 percent.
Indonesia's president on Wednesday appointed World Bank managing director Sri Mulyani Indrawati as the country's new finance minister, as part a wider cabinet reshuffle aimed at increasing the effectiveness of his team. Philippine shares closed 1 percent higher, led by consumer cyclicals and consumer staples. Restaurant chain Jollibee Foods and food and beverage firm JG Summit Holdings were the biggest gainers on the index. Thai shares closed 0.7 percent higher as June exports fell less than expected.
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