Southeast Asian stock markets rose further on Friday, with Malaysia adding 1 percent and Indonesia posting its highest close in more than one month, in the absence of any fresh developments in the US-China trade spat. China has vowed to retaliate to the new tariffs, but the lack of a specific response has likely sparked a global relief rally.
"The broader market continues to remain in a wait-and-see mode for further details on how China might retaliate on trade, while equity markets continue to press higher under the guise that 'no escalating news is good news'," Stephen Innes, head of trading for Asia pacific at Oanda, said in a note. Meanwhile, data showed Chinese exports to the United States surged in June, a result that could further inflame trade tensions with Washington.
Malaysian shares closed higher for a fifth straight session and posted their first weekly gain in five. The benchmark stock index rose 3.5 percent this week, the sharpest since early October 2015. Dialog Group Bhd jumped 6.1 percent on Friday, while electricity provider Tenaga Nasional Bhd was up 1.1 percent. Indonesian shares extended gains into a fifth session and snapped three consecutive weekly falls.
United Tractors climbed over 3.3 percent and Bank Negara Indonesia rose 3.2 percent. Philippine shares rose for a fourth consecutive session with JG Summit gaining 3.7 percent and SM Prime Holdings climbing 1.5 percent. Singapore shares edged higher with DBS Group Holdings rising 1 percent and Jardine Strategic Holdings gaining 1.6 percent.
For the week, the benchmark stock index climbed 2.1 percent, snapping four straight weekly declines. Singapore's economic growth eased in the second quarter, missing forecasts, as manufacturing activity cooled and worsening trade tensions between the world's two largest economies clouded the outlook for the trade-reliant city-state.
Vietnam shares closed 1.3 percent higher, buoyed by financials including Vietcombank, but posted their fifth straight weekly drop.