SINGAPORE: Southeast Asian stock markets ended flat to higher on Tuesday, tracking a global relief rally as risk appetite revived following the centrist win in the first round of French presidential election.
While markets globally got a lift from the expected win of anti-Frexit candidate Emmanuel Macron, they now await the results of the final round of election on May 7 between Macron and far-left leader Marine Le Pen. Macron is widely expected to win the election.
"Asian markets appear to be still lingering in the glow of relief after the French election. The jubilance in markets overnight has also added to the optimism," said Jingyi Pan, a market strategist with IG in Singapore.
Investors were worried that North Korea would conduct another nuclear test or long-range missile launch, perhaps on the Tuesday anniversary of the founding of its military. But instead of a nuclear test or big missile launch, it deployed a large number of long-range artillery units in the region of Wonsan on its east coast for a live-fire drill.
Investors are also looking ahead to US President Donald Trump's promise to announce on Wednesday "a big tax reform and tax reduction".
"For Asian markets, event risks lie ahead, though the imminent event in the form of Trump's tax announcement provides an upside bias for markets," said Pan.
Indonesian shares hit an all-time closing high with telecom stock Sarana Menara Nusantara rising 5.3 percent and Bank Rakyat Indonesia gaining 1.6 percent.
Philippine shares rose 1.5 percent to close at their highest in six months, with gains being led by Aboitiz Power and DMCI Holdings.
Singapore stocks rose for the fourth straight session, while Malaysian shares posted their highest close since May 2015.
"With the ringgit at an attractive level, foreign funds are slowly putting Malaysia back into their radar," said Danny Wong, chief executive officer of Areca Capital.
Thai shares closed at their lowest in more than a month, while Vietnam fell for the fourth straight session, posting their lowest close since March 2.
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