Major Southeast Asian stock markets were mostly higher on Tuesday as investors bought financial stocks and big caps at the start of the reporting season but caution prevailed, with the US debt ceiling negotiations still in deadlock. The positive outlook for the economy and corporate earnings in the region helped sentiment and strong buying sent stocks in Indonesia 1.1 percent higher to a record high, with turnover double the 30-day average.
Others posted more limited gains in moderate volume, with Singapore edging up 0.5 percent to three-month highs and Malaysia inching up 0.14 percent. Thai and Philippine shares erased early gains to end lower. Investors were reluctant to chase the region much higher amid fears that squabbling US politicians would not be able to agree on a debt ceiling deal in time to avoid a default.
In Bangkok, investors locked profits in after eight straight gains that had pushed the benchmark SET index to 15-year highs. "There was a bout of profit-taking late in the session. Investors are waiting for a resolution of the US debt ceiling," said Teerada Charnyingyong, a strategist at broker Phillip Securities. By 0940 GMT, the MSCI index of Southeast Asia was up 0.74 percent, led by a 1.42 percent rise in MSCI Indonesia.
Indonesia gained a slim $9.6 million in foreign inflows on Tuesday after a modest $12 million in outflows on Monday and $69 million in net inflows last week, according to Thomson Reuters data. Indonesia is Asia's best performer this year, ahead of second-ranked Thai stocks and number-three Philippine shares. The Thai stock market gained another 3.5 billion baht ($117 million) in inflows after racking up $619 million in the past seven sessions, the exchange said.
Banks outperformed, led by a 3.7 percent surge in Bank Negara Indonesia, Indonesia's fourth biggest lender by assets. Singapore's United Overseas Bank gained 1.2 percent and Malaysia's Maybank was up 0.23 percent. In Bangkok, top lender Bankok Bank gained 0.3 percent. Industrial conglomerate Siam Cement rose 1.6 percent, encouraged by its earnings outlook for the second half and next year due to improving petrochemical spreads.