Most Southeast Asian markets ended higher on Thursday, led by Indonesia, as optimism over economies reopening from coronavirus-induced lockdowns overshadowed concerns about flaring Sino-US tensions over Hong Kong.
China's parliament approved a decision earlier in the day to go forward with a national security legislation for Hong Kong.
US Secretary of State Mike Pompeo said on Wednesday that Hong Kong no longer qualifies for its special status under US law - potentially worsening relations between the world's two biggest economies.
There is a "sense of disbelief" that the two countries would enact another trade war in the current circumstances, according to Jeffrey Halley, senior market analyst at OANDA.
In Indonesia, local media reported that the country was bracing to gradually reopen the economy in certain regions amid its "new normal" coronavirus restrictions.
Extending its rally to a third day, the benchmark index led gains in the region and rose 1.6% to its highest closing level in nearly a month.
Financials contributed to nearly three-fourths of the index's gains, with PT Bank Central Asia Tbk up 6.7%.
In the Philippines, the coronavirus task force recommended easing the lockdown in the capital Manila, which has so far been one of the toughest and longest lockdowns in the world.
The local benchmark ended 0.8% higher, aided by gains in big cap financials such as Security Bank Corp and BDO Unibank Inc.
Vietnamese stocks rose on financials, while Singaporean equities were subdued throughout the session.
Meanwhile, Thai shares erased early gains and closed 0.6% lower, after the country's planning agency said that Thailand may lose up to 2 million jobs this year due to the pandemic.
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