Southeast Asian stock markets rose on Tuesday, tracking gains in China as weak quarterly economic data strengthened market expectations Beijing will unveil more stimulus measures, while selective buying lifted Thai banks in a reporting season. Bangkok's SET index rose 1.7 percent to close at 1,266.01, the highest since January 13. Shares of Siam Commercial Bank jumped 3.5 percent before the bank reported slightly higher-than-expected quarterly results.
Shares of Kasikornbank rallied nearly 5 percent while the banking subindex gained 2.6 percent as investors shifted focus to the sector's 2015 and fourth-quarter earnings releases due out this week. Stocks in Singapore and Malaysia posted their first gains in four trading sessions. Indonesia and the Philippines recovered from Monday's losses, while Vietnam ended four sessions of losses.
"Stocks which have been bashed the most enjoyed a refreshing upswing, helped by short-covering and some bargain hunting," said Singapore-based broker NRA Capital in a report. Asian shares as measured by MSCI's broadest index of Asia-Pacific shares outside Japan gained 1.7 percent.
Vietnam's benchmark VN Index rebounded 1.8 percent on Tuesday from a near 13-month closing low in the previous session as investors picked up battered stocks amid a recovery in regional markets. Most bluechips rallied, led by Vietcombank, the country's top lender by market value, which bounced back 4.4 percent from an eight-month low on Monday. Dairy products maker Vinamilk rose 1.71 percent.
Vietnamese shares are now the cheapest in Southeast Asia despite being the best performer last year, with the VN Index's price-to-earnings ratio at 10.44, Thomson Reuters data showed. Despite Tuesday's technical rebound that reflected a recovery in Asian markets, analysts and traders said investors have yet chipped in strongly ahead of the country's January 20-28 Party Congress which would pick a leader for the ruling party for the next five years. Trading volume hit 126 million shares on Tuesday, below the five-day average of 141 million, Reuters data showed.