Southeast Asian stock markets gained on Tuesday after Federal Reserve Chairman Ben Bernanke signalled ultra-loose monetary policy would continue. Foreign investors bought shares in Indonesia and Malaysia with a net inflow of $54.4 million and $105.1 million respectively on Tuesday.
Federal Reserve Chairman Ben Bernanke on Monday made clear that the central bank is in no rush to reverse its ultra-loose monetary policy after responding aggressively to a deep recession. "Bernanke's words that monetary policy will be loose will provide a short term catalyst for the markets. Overall the trend is upwards but it's going to be slow for the rest of the year," said a trader.
Indonesia gained 1.2 percent to a near eight-month high, Singapore jumped 1.5 percent, recovering from a two-week low, and Thailand ended 1.6 percent firmer to 1,207.29 points, near its record closing high of 1,207.67 hit on Wednesday last week. Malaysia edged up 0.3 percent and the Philippines gained 1 percent.
MSCI's broadest index of Asia Pacific shares outside Japan was trading 1.7 percent firmer at 0943 GMT. Jakarta's main index reached 4,079.38 points, its highest close since August 4, last year led by 1.8 percent gain in Indonesian auto distributor PT Astra International Tbk and 1.3 percent in Bank Central Asia Tbk PT.
"If the global economy is bad, it is good for Indonesian markets as the economy doesn't predominantly rely on exports. We see the index gaining to the 4,500 level led by banks and consumer sectors," said Harry Su, head of research at Jakarta-based Bahana Securities. Energy stocks helped boost the market with 2.3 percent rise in the country's top oil firm PTT PCL and 2.9 percent in PTT Exploration and Production PCL.
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