Stocks in Indonesia and Malaysia snapped a five-day losing streak, while Singapore rebounded on Thursday, as battered regional currencies recovered but outflows in Southeast Asia suggested funds were still cautious after China's yuan move. Indonesia was an outperformer, with stocks measured by the broader Jakarta composite index up 2.3 percent, after falling for a fifth straight day in the previous session to its lowest closing level since February 2014.
Palm oil producers such as Astra Agro Lestari and Sinarmas Agro Resources and Technology rallied on expectation they would benefit from a weaker rupiah. Most emerging Asian currencies rose on Thursday as the yuan's decline slowed following Chinese central bank efforts to calm global markets after its devaluation earlier this week.
Indonesia posted net foreign selling of 1.17 trillion rupiah ($85.15 million), for the eighth straight day, Thomson Reuters data showed. Malaysia gained 0.7 percent as local institutions bought shares, while foreign investors sold a net 111 million ringgit ($27.69 million), for the sixth successive day, stock exchange data showed. Singapore rose 1 percent, its first gain in three days. Thai stocks were down 0.3 percent, trimming some early losses, with foreign investors net sellers for an eighth day. The Philippine index ended lower for a second day and Vietnam fell for a third straight day to a six-week low after the central bank widened its currency trading band.