Most Southeast Asian stock markets posted modest gains on Monday as investors picked consumer and financial stocks supported by growth at home, with sentiment reviving after signs of improvement in the German and US economies. The region recouped early losses in line with markets elsewhere in Asia and as the euro recovered after data showing German exports jumped 2.5 percent in November.
Leading gainers, Philippine shares climbed 1.3 percent to five-month highs but in turnover of just 0.22 times the 30-day average and Thai stocks edged up 0.8 percent to two-week highs after early weakness as bank shares recovered. Malaysia's main index was up 0.5 percent, Vietnam rose 0.8 percent after four losing sessions of more than 4 percent and Indonesia edged up 0.5 percent. Singapore bucked the trend, falling 0.9 percent.
Traders cited profit-taking after the Singapore bourse racked up gains in the four previous trading days. Nagging concerns over the eurozone debt crisis helped keep risk-averse investors cautious. The weakness of Asian currencies against the US dollar as investors run to the dollar as a safe haven may ultimately eat up profits at Southeast Asian firms.
"For Indonesia, fundamentally it remains solid. Our main concern is about the rupiah weakness because of the stronger dollar," said Jakarta-based Harry Su, head of research at Bahana Securities. Better-than-expected US job data has underpinned hopes that the world's biggest economy is on a recovery path.
MSCI's broadest index of Asia Pacific shares outside Japan edged up 0.16 percent at 0933 GMT. In Bangkok, banking shares rose 0.98 percent, led by a 1.4 percent rise in the biggest, Bangkok Bank Pcl. The prospect of higher levies on deposits has hurt the profit outlook for banks but traders said the sector appeared oversold.
Shares seen as beneficiaries of domestic consumption were among gainers in the region, with PT Unilever Indonesia Tbk up 2.1 percent and Telekom Malaysia Bhd up 1.04 percent. In Manila, bank stocks gained amid expectations of lower interest rates, which could help boost domestic consumption and demand for loans, said Manila-based Gregg Llag, an analyst at AB Capital Securities. Lower Philippine inflation for December bolstered hopes for a possible rate cut by the Philippine central bank this month, he said. Metropolitan Bank and Trust Co surged 4.6 percent and BDP Unibank Inc jumped 4.2 percent.