Singapore shares jumped on Friday after its central bank tightened monetary policy for the first time in six years, while other Southeast Asian stock markets ended lower, with the Philippine index down nearly 2 percent on broad-based losses. The Monetary Authority of Singapore (MAS) said it would slightly increase the slope of the Singapore dollar's (SGD) policy band from zero percent previously, while keeping the width and mid-point of the band unchanged.
The policy tightening was in line with expectations, and came as official data showed the city-state's economy expanded 4.3 percent in the first quarter from a year earlier. "The MAS's decision to link the return to a mild SGD appreciation stance to global trade tensions, coupled with a stable growth/inflation outlook for Singapore suggested no urgency to follow through with another tightening at the next review in October," said Philip Sung Seng Wee, senior currency economist at DBS Bank.
Singapore shares ended nearly 1 percent higher, posting its third straight weekly gain, with financial stocks. Oversea-Chinese Banking Corp up 1.9 percent and DBS Group Holdings 1.5 percent higher. The index ended the week about 1.7 percent higher. Philippine shares slumped 1.8 percent, ending lower for the seventh week in eight.
SM Investments Corp snapped a five-session winning streak to fall 4.9 percent, weighing on the index. Realty companies Ayala Land Inc and SM Prime Holdings Inc dipped 2.2 percent and 1.9 percent, respectively. Vietnam fell over 1 percent, snapping eight weeks of gains. The index lost 1.4 percent this week. Vietcombank fell 4.2 percent, its third straight session of losses. Lender BIDV dropped 5.4 percent, its lowest in nearly one month.
Shares in Indonesia slipped 0.6 percent, but ended the week over 1.5 percent higher, reversing six weeks of losses. Consumer goods giant Unilever Indonesia fell 2.9 percent, its third straight session of losses, and Astra International shed 2.6 percent. The Thai share market was closed on Friday.