Most Southeast Asian stock markets closed higher on Friday, in line with broader Asia, after comments from Federal Reserve officials eased worries about faster rate hikes in the United States. St. Louis Fed President James Bullard said Thursday that policymakers need to be careful not to increase rates too quickly as that could slow the economy, while Dallas counterpart Robert Kaplan said three rate increases in 2018 was a "reasonable" base case.
E-Mini futures for the S&P 500 were trading 0.3 percent higher. The index took a hit on Wednesday after minutes of the Fed's last meeting showed inflation would perk up, possibly setting the stage for additional rate hikes. Asia shares ex-Japan were up over 1 percent.
In Southeast Asia, financials drove Singapore shares 1.3 percent higher and the FTSE Straits Times Index ended the week 2.6 percent firmer, its best in over one year. United Overseas Bank Ltd rose 2 percent while DBS Group Holdings and Oversea-Chinese Banking Corporation Ltd climbed over 2 percent each to all-time closing highs.
The city-state reported no consumer inflation in January, for the first time since late 2016, due to lower accommodation and private road transportation costs, data showed on Friday. Vietnam shares marched 2.5 percent higher and were up for a fourth session in five. Financials led the gains, with Vietcombank climbing 6.9 percent to a record close.
The index ended the week 4.1 percent higher, and is the best performer in the region so far this year, having gained 12.1 percent. Thai and Indonesian shares rose 1.1 percent and 0.4 percent, respectively, on broad-based buying.
However, Philippine shares fell 0.6 percent and settled at their lowest since December 22 as industrials, financials and real estate stocks lost ground. Conglomerate JG Summit Holdings Inc was the biggest drag, down 2.8 percent at its worst close since late-December. The benchmark finished the week 1.7 percent lower and is the only loser so far this year in the region.