Singapore and Malaysian stocks rose on Tuesday, in line with broader Asia as stimulus proposals in major economies muted recession fears, while Thai shares retreated as the government cut its 2019 economic growth forecast. Hopes gathered momentum that global policymakers would introduce further stimulus to prevent a sharp economic slowdown, after countries including China and Germany proposed steps to prop up flagging economies.
Market participants, however, kept a cautious stance ahead of the release of minutes from the US Federal Reserve's July meeting and Chair Jerome Powell's speech at the Jackson Hole symposium this week. Singapore shares hit one-week highs, boosted by real estate firms. CapitaLand Ltd gained 2% and Hongkong Land Holdings added 1.6%.
Malaysian shares rose to more than one-week closing highs, with lender CIMB Group Holdings gaining 2.8% while telecom firm Axiata Group added 0.8%. Vietnam stocks gained for the fifth straight session, with real estate developer Vinhomes JSC jumping 3%.
Thai shares reversed course to close 0.7% lower as the finance ministry cut its 2019 economic growth forecast to 3% from 3.8% projected in April, due to falling exports. Thailand's customs-cleared trade data is due on Wednesday, with annual exports seen falling 2.3% in July after a 2.15% drop in the prior month, according to a Reuters poll.
Philippine equities shed 0.7%, with fast food chain Jollibee Foods Corp declining nearly 4% while snack and beverage maker Universal Robina Corp slipped 2.6%. "Investors took profits from yesterday's (Monday) run-up, sending the bellwether index down," RCBC Securities said in a note.