Southeast Asian stock markets rose on Thursday, with the Philippines leading the pack as investors expect the country's central bank to ease monetary policies after data showed the economy grew slower than expected in the fourth quarter of 2018. The Southeast Asian economy grew 6.1 percent in the fourth quarter from a year earlier, slightly faster than the previous quarter's 6.0 percent, but below the 6.2 percent seen in a Reuters poll. That brought full-year growth of 6.2 percent, below the government's downwardly revised target of 6.5-6.9 percent and 2017's pace of 6.7 percent.
Some economists say if growth slows more, the central bank, which hiked rates five times in 2018 by 175 basis points in total to battle high inflation, could loosen policy this year. "We can see the BSP (Bangko Sentral ng Pilipinas) slashing RRR (reverse repo rate) further in the first quarter followed by a possible policy rate cut in the second quarter to help bolster growth for the second half of the year," Nicholas Mapa, a senior economist with ING, said in a note.
The benchmark Philippine stock index rose 0.9 percent to its highest close in over 10 months, buoyed by financials and industrials. Index heavyweights Universal Robina Corp and Bank of the Philippine Islands gained 3.5 percent and 2.1 percent, respectively. Malaysian stocks rose 0.3 percent after data showed lower-than-expected December inflation and the central bank held rates.
The consumer price index rose 0.2 percent in December from a year earlier, below the 0.4 percent forecast in a Reuters poll. The central bank kept its key interest rate at 3.25 percent as widely expected and said the economy was expected to remain on a steady growth path in 2019. Materials and financials were among the top gainers with Malayan Banking Bhd rose 0.8 percent, while Petronas Chemicals Group Bhd firmed 1.2 percent. Meanwhile, a trading mishap in Singapore's Jardine Matheson Holdings Ltd sent the benchmark stock index down as much as 0.6 percent before it recovered.