Most Southeast Asian stock markets rose on Wednesday, tracking gains in broader Asia, as investors shrugged off the latest round of tariff war between Washington and Beijing. China will levy tariffs on about $60 billion worth of US goods in retaliation for new U.S tariffs, as previously planned, but has reduced the volume of tariffs that it will collect on the products.
The new tariff measures will take effect on September 24, the date when the United States says it will begin to levy new tariffs of 10 percent on $200 billion of Chinese products. "Financial markets may be turning slightly blase towards the US-China tit-for-tat trade war, with China's retaliation of tariffs on $60 billion of US imports .... providing some respite to the sell-off for selected Asian bourses," OCBC said in a note.
Thai shares closed higher for a second straight session and posted their highest close since May 23, helped by gains across the board. Index heavyweights PTT Pcl and CP All Pcl rose 1 percent and 3.7 percent, respectively.
Earlier in the day, the central bank left its key policy rate unchanged at 1.50 percent, as widely expected, and maintained its forecasts for export and economic growth this year. Consumer stocks helped Indonesian shares climb 1.1 percent with Astra International rising nearly 5.3 percent and Unilever Indonesia adding 1.5 percent. An index of the country's 45 most liquid stocks rose 1.2 percent.
Singapore stocks gained 1.2 percent after two straight sessions of declines and posted a two-week closing high. DBS Group Holdings, the city-state's top lender, rose 1.2 percent, while Oversea-Chinese Banking Corp added 0.7 percent. Meanwhile, Philippine shares fell nearly 1 percent to a more than two-month closing low, dragged by financials.
Bank of the Philippine Islands and Ayala Corp declined 3.2 percent and 2.1 percent, respectively. The archipelago is facing high inflation and rising costs, with the situation worsening due to a weak peso. This has sparked concerns of a widening current account deficit with the central bank signalling a fourth hike in its benchmark interest rates this year, a central bank official said on Tuesday.