BENGALURU: Most Asian stock markets climbed on Friday, with Indonesian equities hitting a record high, driven by sustained growth optimism fuelled by government stimulus, while regional currencies inched up against a softening dollar. The MSCI emerging Asia equities index rose 1.1 percent.
Shares in Jakarta jumped 0.6 percent to touch an all-time high of 8,689.099 before giving up gains to trade marginally higher. The benchmark was set for a third straight weekly gain, up 1.6 percent this week. “The valuations (in Indonesia) are quite reasonable, positioning is light and growth momentum, particularly on the investment side, is starting to improve,” said Rajat Agarwal, Asia equity strategist at Societe Generale.
This year, Indonesia has rolled out a 16.23 trillion rupiah (USD974.48 million) stimulus package under the new Finance Minister Purbaya Yudhi Sadewa. Liquidity injections into state lenders and a firmer growth outlook have further lifted investor confidence.
The Philippines shares jumped 1.1 percent after inflation eased more than expected in November due to a decline in food prices.
The surprise slowdown has fuelled bets that the Bangko Sentral ng Pilipinas may move ahead with an interest rate cut next week, a move that the governor has hinted at previously.
Elsewhere, Indonesian and Thai central banks are scheduled to meet on December 16-17 to deliver their last policy decisions of the year.
Analysts at ANZ expect all three central banks to cut rates.
“We are now in the final stages of the easing cycle in the region, with central banks expected to conclude their rate cuts by Q1 2026.”
Taiwan’s stock index rose 0.2 percent, while South Korean shares rose 1.1 percent, boosted by a 7.6 percent jump in Hyundai Motor after the United States reduced tariffs on automobile imports.