Most Southeast Asian stocks closed higher on Monday, in line with Asian peers, as upbeat US jobs data eased concerns over the health of the world's largest economy, with Indonesia hitting a 13-month high and Philippines up more than 1 percent.
The US employment report on Friday, which showed the economy added 287,000 jobs last month, was more than forecast and acted as an immediate impetus for investors starting the week with a greater appetite for risk."A stronger jobs report more or less eschews heightened concerns about the US economy coming to a screeching halt," said Vishnu Varathan, a senior economist with Mizuho Corporate Bank in Singapore.
The Bank of England meets on Thursday and might cut its 0.5 percent interest rate to offset the economic drag from Britain's vote to leave the European Union. The Jakarta Composite Index gained 2 percent, led by financials and consumer staples, closing at its highest since June 2015. Bank Central Asia Tbk PT and Bank Rakyat Indonesia (Persero) Tbk PT gained 2.1 percent and 5.6 percent, respectively. Philippine shares finished 1.2 percent higher, led by property developers and consumer cyclicals. SM Prime Holdings and Ayala Land gained 2.9 percent and 2.4 percent, respectively.
Singapore's Straits Times index closed at its highest in more than two months, with consumer services and financials leading the gainers. Thailand and Malaysia gained 0.9 percent and 0.6 percent, respectively. However, Vietnam closed 1 percent lower, dragged down by energy stocks.