Southeast Asian stock markets gained on Wednesday as Chinese economic growth data eased some fears about a global slowdown and resource shares advanced in line with the improving outlook for commodity demand from the world's second-largest economy. The region snapped a two-day losing streak, also helped by bargain-hunting in recently beaten-down banks as their reporting season kicks off this month and strong consumption suggests a favourable outlook in the financial sector.
Stocks in the Philippines, Thailand and Indonesia climbed over 1 percent, with others posting more limited gains. China's economy grew faster than expected in the second quarter, easing fears of a hard landing. By 0913 GMT, the MSCI index of Asia excluding Japan had climbed 1.13 percent while the MSCI index of Southeast Asia rose 1.05 percent.
In Bangkok, the Bank of Thailand raised its benchmark interest rate a quarter of a point to 3.25 percent and signalled further tightening to come to tame inflationary pressures as the new government moves to boost growth and increase wages. Foreign investors sold Thai shares worth a net $10 million, adding to their net selling of around $110 million in the past two sessions, the exchange said, amid concerns about rising inflation.
The Philippine stock market gained $11 million in inflows, snapping three sessions of outflows, according to Thomson Reuters data. Indonesian coal miner Adaro Energy rose 2 percent, Malaysian palm plantation firm IOI Corp edged up 0.6 percent and top Thai refiner Thai Oil surged 2.4 percent.
Comments
Comments are closed for this article.