Indonesian shares bounced back on Wednesday to close more than 1% higher, while weakness in oil prices and renewed political tensions sent Thai stocks lower. Consumer and telecom stocks helped the key Jakarta stock index post its fourth sessions of gains in five. "This (bargain hunting) is backed by subsided tension of post-election situation and growing confidence of further stability," said Anugerah Zamzami Nasr, an equity research analyst with Phillip Sekuritas Indonesia.
Telekomunikasi Indonesia and Unilever Indonesia Tbk PT rose 2.4% and 2.1%, respectively. Malaysian shares rose 0.8% to a near three-week high in intraday trade before closing 0.6% higher. HSBC upgraded Malaysian stocks to "neutral" from "underweight", stating the "economy looks resilient".
"The market has strong defensive qualities, which would reduce downside risks if trade tensions escalate," HSBC said in a note. This helped boost investor sentiment in Malaysian shares, which had declined 4.5% thiis year as of Tuesday's close Index heavyweights Tenaga Nasional Bhd and IHH Healthcare Bhd climbed 5.7% and 2.6%, respectively.
Philippine stocks gained 0.5%, underpinned by industrials. AP securities analyst Rachelle C Cruz said the absence of significant outflows to China A shares after the MSCI EM index rebalance helped boost investor sentiment. Top industrial firms SM Investments Corp and JG Summit Holdings Inc advanced 1.1% and 2.7%, respectively.
Meanwhile, Thai stocks declined 0.8%, snapping three straight sessions of gains. The main opposition Pheu Thai urged other parties that contested a March election to reject a coalition offer by a pro-army party seeking to keep the ruling junta chief as prime minister. Consumer and material stocks took a hit, while energy stocks dipped on lower oil prices. Siam Cement PCL dipped 2.6%, while PTT PCL slid 1.6%.
Singapore stocks closed marginally lower with financials dragging down the index. DBS Group Holdings and United Overseas Bank fell 0.4% and 0.8%, respectively.
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