Singapore and Thai stock markets closed higher on Thursday, drawing support from the financial and energy sectors, while Southeast Asia's top year-to-date percentage gainer, Vietnam, fell for the third session in four. Broader Asian shares slipped after Chinese stocks retreated and as concerns about rising interest rates softened investor sentiment.
The US Federal Reserve on Wednesday flagged interest policy tightening later this year and upgraded its inflation outlook at its policy meeting. However, data showing strong manufacturing activity in the start of the year in China and other major Asian economies helped reinforce expectations of robust global growth. Thai shares climbed 0.4 percent, led by gains in financials and energy stocks.
Thailand's annual headline inflation rate eased in January, missing forecasts and below the central bank's target range, giving policymakers room to keep interest rates low, commerce ministry data showed on Thursday. PTT Pcl closed 1.3 percent higher and PTT Exploration and Production Pcl surged to a near three-year closing high. Singapore firmed 0.4 percent, boosted mainly by financials.
United Overseas Bank Ltd climbed more than 2 percent, while DBS Holdings closed at a one-week high. Indonesian shares fell marginally as gains in financials were offset by losses in consumer and telecommunications stocks. The country's annual inflation rate in January eased to its lowest since December 2016, the statistics bureau said on Thursday, on weak housing and utility prices.
The Philippine index erased earlier gains to close 0.3 percent lower, marking a third consecutive losing session. Industrials dragged the index, with Aboitiz Equity Ventures ending more than 2 percent lower, and SM Prime Holdings falling to its lowest close in nearly seven weeks. The Philippine central bank said on Wednesday that annual inflation in January may hit the upper end of the government's target range of 2.0 percent to 4.0 percent for this year, boosted by higher prices of oil and food.
Vietnam stocks, the only market in the region with double-digit gains in percentage terms since the start of this year, fell to their lowest close in 10 days, shedding 1 percent. Malaysia remained closed for a public holiday.
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