Southeast Asian stock markets pushed higher on Wednesday as investors bought commodities-related shares, while an Indonesian interest rate cut helped spur buying in banks. Turnover in Indonesia was double the monthly average and most markets in the region saw foreign inflows.
Jakarta's main index rose 2.95 percent to the highest in nearly three weeks, with top micro lender PT Bank Rakyat Indonesia Tbk up 3.2 percent and developer PT Bakrieland Development Tbk surging 11.2 percent. Indonesia's central bank unexpectedly cut its benchmark policy rate by 25 basis points to a record low 6.50 percent on Tuesday to stimulate domestic demand as global growth slows.
Stocks in Singapore climbed 1.7 percent and Malysia gained 1.2 percent. Philippine shares edged up 0.3 percent and Thai stocks rose 0.8 percent in a choppy session, falling nearly 1 percent at one stage. Sentiment in Bangkok has been hurt by severe flooding that is bound to depress the manufacturing sector and economic growth this quarter. Among losers, printed circuit board manufacturer KCE Electronics Pcl tumbled 9.6 percent after it temporarily shut its plant in Ayutthaya as flooding had caused power to be lost.
MSCI's broadest index of Asia Pacific shares outside Japan was up 1.3 percent by 1042 GMT on Wednesday. The Shanghai Composite was up 3.04 percent. Chinese authorities stepped in to bolster financial shares this week when Central Huijin, the domestic investment arm of the country's sovereign wealth fund, bought shares in the "Big Four" Chinese banks. Among bright spots in the region, palm oil stocks gained as Malaysian palm oil futures rose to a one-week high, buoyed by gains in comparative vegetable oils ahead of a key agriculture report from the United States.
Singapore-listed Wilmar International Ltd gained 3.1 percent, Malaysia's IOI Corporation Bhd rose 2.7 percent and Indonesia's PT Astra Agro Lestari Tbk surged 6.5 percent. The surge in Astra shares pushed the stocks above the "oversold" mark, with its 14-day Relative Strength Index (RSI) closing at 40, compared with 28.6 on Tuesday. A level of 30 or lower indicates stocks are oversold.
Among bright spots in Bangkok, financial firm Tisco Financial Group Pcl jumped 5.3 percent, outpacing a 0.4 percent gain in banking shares, after it posted a 23 percent rise in quarterly earnings as loan growth boosted interest income. Indonesia reported a net $65 million in foreign inflows, Malaysia gained 77 million ringgit ($24.5 million), Thailand 776 million baht ($25 million) and the Philippines $3.2 million, Thomson Reuters and stock exchange data showed.