Southeast Asian stock markets rose in thin volume on Monday amid short-covering after euro zone leaders clinched a deal with Greece and Indonesia extended gains for a second day on hopes the central bank will keep policy rate steady. The Jakarta composite index ended up 0.7 percent, building on Friday's 0.4 percent gain. Banking shares were among the actively traded, led by Bank Mandiri and Bank Central Asia.
Indonesia's central bank is expected to keep its benchmark interest rate unchanged at 7.5 percent at a policy meeting on Tuesday as it guards against inflation and potentially more weakness in the rupiah. European markets gave a weary cheer on Monday as euro zone leaders emerged from-all night talks in Brussels with a deal to keep Greece afloat and part of the euro currency union.
Indonesia's stock exchange saw trading volume fell to 73 percent of its 30-day average. Volumes on most other major exchanges in the region were only about two-thirds the average. Singapore's index hit a near one-week closing high. Indexes in Thailand and the Philippines both rose for a third straight day. Vietnam touched a 10-month closing high, while Malaysia ended slightly higher.