Most Southeast Asian stock markets closed higher on Tuesday, tracking Wall Street as a fall in US Treasury yields eased concerns about rising interest rates. Wall Street finished near three-week highs on Monday ahead of Federal Reserve Chairman Jerome Powell's long-awaited first congressional testimony later on Tuesday. "Investors appear less concerned by US rate hikes than at any point this month, which is what is providing the positive tone in global equity markets," said Stephen Innes, head of trading for Asia Pacific at Oanda.
Powell's testimony will be scrutinized for clues on the pace of Fed's policy normalisation following years of stimulus. Philippine shares rose 1.1 percent, outperforming other markets in the region. Industrials and financials were the top performers, with BDO Unibank Inc surging 4.7 percent and JG Summit Holdings Inc climbing 5.6 percent. Malaysian shares firmed 0.6 percent, led by a rally in financials.
CIMB Group Holdings, Malaysia's second-largest lender, climbed 1.3 percent to its highest close since late August 2014, while Hong Leong Bank Bhd rose to a record close. Vietnam shares added 0.5 percent, extending gains into a third session, while Indonesian stocks rose 0.7 percent, driven by materials. Cement producer Indocement Tunggal Prakarsa Tbk PT accounted for most of the gains with a jump of 9.3 percent to its highest close since January 18.
Thai shares came off a record high hit earlier in the session to close down 0.2 percent. Convenience store operator CP All PCL fell 1.5 percent and accounted for most of the decline. Singapore shares fell 0.4 percent, dragged by a near 2 percent fall in DBS Group Holdings, the city-state's biggest company by market capitalisation.
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