Shares in Indonesia and the Philippines hit multi-month peaks on Wednesday, leading other Asian emerging markets higher as a rebound in global sentiment helped offset broader worries about elevated inflation and the Federal Reserve's tapering timeline.
Rising oil, gas and coal prices also boosted energy stocks on the Malaysian stock market, driving the index more than 1% higher, with oil services firm Dialog Group and Petronas Chemicals among the top gainers.
Asian stocks tracked gains on Wall Street, which rallied overnight as Microsoft and Apple spearheaded a strong rebound in growth stocks. Global stock markets had sold off on Monday on concerns about inflation, the timing of Fed tapering, and the US government's ability to raise the debt ceiling.
Stocks in Jakarta climbed as much as 2.1% to their highest since January, having rallied around 4% since the end of September.
In the Philippines, shares jumped 1.3% to their highest since mid-February. Globe Telecom rose over 9% to a record high, having rallied more than 25% since the end of August as it expands its fibre rollout and gains revenue share from rivals.
Asia's emerging currencies, however, dipped against a firmer US dollar. The greenback inched higher ahead of US jobs data this Friday that may offer more insight into the timing of the Fed's plans to tighten policy.
Analysts said emerging currencies have shown a relatively muted reaction to the Fed's announcement in September that it would likely begin reducing its monthly bond purchases as soon as November.
In the so-called "taper tantrum" of 2013, a Fed announcement that it would begin cutting back on bond purchases led to a sharp sell-off in emerging market currencies.
"The expected tantrum of taper this time is over-hyped," said Kunal Kundu, an economist with Societe Generale.
"The tantrum in 2013 was because of the suddenness of the announcement on an absolutely unprepared market. This time, the market is actually expecting a taper," he said, adding that the Fed's communication has ruled out any surprise.
The Reserve Bank of New Zealand lifted its official cash rate for the first time in seven years on Wednesday, as developed economies begin to unwind pandemic-era monetary policy.
Highlights:
** Indonesian 10-year benchmark yields are down 1.3 basis points at 6.31%
** Top two gainers in Malaysia were Sime Darby Plantation Bhd and Kuala Lumpur Kepong Bhd
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