South East Asian markets: Malaysia at highest in over a week

Southeast Asian stock markets rose on Monday as worries about Japan's nuclear problems eased a little, but volume was thin as investors remained concerned about oil prices after Western powers launched air strikes on Libya. Investors bought shares in what were seen by some as oversold markets in the region, driving the Thai SET index and Singapore to a one-week high.
"Sentiment is still cautious," Ron Rodrigo, head of research at Manila-based DBP-Daiwa, said. "With the nuclear radiation concern easing, the attention is now on Libya." Thailand, Singapore at 1-week high The air strikes on Libya against Muammar Gaddafi's forces have renewed fears over supplies of crude oil from the Middle East. "The main concern is rising inflation due to high oil prices with an expected disruption in supply from the region," Rodrigo said.
The World Bank said on Monday inflation remained a major challenge and tighter monetary policies were needed across East Asia, playing down risks to regional growth from the devastating earthquake in Japan. Despite these concerns, Asian stocks were generally positive on the day, with the MSCI index of Asia Pacific shares outside Japan up 1.35 percent by 0923 GMT and the MSCI index of emerging market stocks up 0.87 percent.
Singapore gained 1.6 percent, as did Vietnam, Indonesia rose 0.7 percent, Malaysia closed 0.3 percent firmer and the Philippines edged up 0.1 percent. Thailand added 1.7 percent, led by financial shares. "The market had good buying interest today, including short-covering by foreign investors," said Sukit Udomsirikul, a strategist at broker SCB Securities.
"Overall, the positive sentiment largely reflected easing fears about Japan's nuclear crisis. Gains were across the board. The strong oil prices and an upcoming general election were among positive factors," he said. Thai Prime Minister Abhisit Vejjajiva narrowly survived a parliamentary no-confidence vote on Saturday, ensuring his government remains in office in the run-up to what is likely to be a close election.
Investors are hoping the poll will lead to greater stability. But analysts warn the elections may not go smoothly, with scope for foul play or challenges to the outcome from either side, leading to renewed street protests or even a coup. Manila saw a net foreign inflow of $7.4 million and Malaysia enjoyed $12.7 million in inflows, while Indonesia saw an outflow of $10.6 million.