Southeast Asian stocks: Philippines surges most in 15 months

Philippine shares surged 2.7 percent on Thursday, the most since December 2016, as the central bank maintained its key rate and the US Federal Reserve's rate outlook for 2018 was seen as less hawkish than expected. Bangko Sentral ng Pilipinas kept the benchmark interest rate unchanged at 3 percent on Thursday and said it expected inflation to remain within its target for this year and next.
The Fed raised its interest rate on Wednesday and reiterated two more rate increases this year, signalling caution in its monetary policy tightening pace. The Fed's outlook for a total of three rate increases for 2018 helps retain the allure of higher yielding assets in emerging markets, which would have reduced had more rates hikes been predicted.
The Philippine Stock Exchange PSEI Index closed higher for the first time in four sessions. While all sectors rose, real estate and industrial stocks contributed the most to the main index's gain. SM Investments Corp jumped 5.3 percent, while Ayala Land Inc gained 5.5 percent.
The benchmark stock index declined in six sessions of the seven through Wednesday, shedding a total 6.4 percent. Indonesian shares fell 0.9 percent, making them the biggest losers in Southeast Asia. Most sectors ended in the negative territory with financials and consumer staples weighing heavily on the benchmark.
Holding firm Sinar Mas Multiartha dropped 9.1 percent, while an index of the country's 45 most liquid stocks declined 1.1 percent. Vietnam shares rose for a ninth straight session and posted an all-time closing high.
Utilities and consumer staples were among the top gainers with Petrovietnam Gas Joint Stock Corp rising 5.2 percent. The benchmark stock index has risen more than 19 percent so far in 2018 after a 48 percent jump last year.
Malaysian shares gained 0.6 percent, helped by financials and consumer staples. Malayan Banking Bhd gained 2.5 percent. Singapore shares declined 0.6 percent, weighed down by financials, with Oversea-Chinese Banking Corp Ltd shedding 1.2 percent.