Most Southeast Asian stock markets finished higher on Thursday, with Thailand leading the gains, as risk sentiment improved backed by a recovery in oil prices and expectations of a fresh relief package in the United States.
Oil rebounded from historic lows as it plunged into sub-zero levels earlier this week, amid signs that producers are cutting production to weather a collapse in demand as the coronavirus outbreak ravages world economies.
This, along with expectations of the US Congress approving a $484 billion coronavirus financial aid later on Thursday, gave Wall Street a boost overnight, which resultantly spilled over to the Southeast Asian region.
"The market, hungry for any news to pick up oil from the oversold depths, was seen aiding with the climb in crude prices overnight...the lift for Wall Street overnight...is expected to likewise inspire the region," said Jingyi Pan, market strategist at financial services firm IG.
The energy sector propped up the Thai index, gaining the most in the region. It ended 0.85% higher, boosted by a 1.9% gain in Thai Oil.
The Vietnamese index was also boosted by energy stocks, as it ended 0.7% higher. Petrovietnam Gas Joint Stock gained 2.5%.
Indonesia, the region's largest economy, saw its benchmark finish 0.6% higher, boosted by consumer stocks. Unilever Indonesia firmed 5.6% to close to its highest since March 13, while Indofood settled 1.3% up.
The Philippines' index ended 0.5% higher, with SM Investments Corp advancing 3.3% and Jollibee Foods gaining 1.5% at close.
Meanwhile, the Singaporean benchmark finished the session 0.3% weaker. Singapore Technologies Engineering shed 2.1%, while Jardine Matheson Holdings slid 1.8% at close. Singapore's main price gauge contracted for a second consecutive month in March, data showed on Thursday, with prices falling 0.2% from a year earlier.
Malaysia's benchmark closed little changed.
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