South East Asian markets: Malaysia bounces back ahead of polls; Indonesia falls

Malaysian shares rose 1 percent on Tuesday and snapped four straight sessions of decline a day ahead of the general elections, while Indonesian stocks fell nearly 2 percent to their lowest close in nine months. Malaysian Prime Minister Najib Razak and his ruling Barisan Nasional coalition face their toughest general election yet on Wednesday with an unprecedented challenge from Mahathir Mohamad, Najib's former mentor turned opposition leader.
The ringgit was near a four-month low on Tuesday. Anything other than improved Barisan Nasional standings pose significant downside risks to the currency, said Mizuho Bank. Financials led the gains on the Malaysian stock index with CIMB and Malayan Banking being the biggest boosts.
Malaysian financial markets will be closed on Wednesday for the elections. Indonesian shares fell for a third session in four, a day after data showed the country's economic growth slowed slightly in the first quarter, pressuring the currency.
The rupiah extended its fall and hit the lowest since December 2015 on Tuesday. The tepid growth rate could put the central bank in a bind at its May 16-17 policy meeting. Its governor has said the bank could raise rates to halt further rupiah depreciation if that threatened the inflation target or financial stability.
"Sluggish growth could limit Bank Indonesia's ability to lift interest rate to restore financial stability," Mizuho Bank said in a note.
Telekomunikasi Indonesia was the biggest drag on the index with a fall of 4.7 percent. An index of Indonesia's 45 most liquid stocks closed 2.2 percent lower. Thai shares declined over 1 percent to a three-week closing low, weighed by energy stocks. PTT, PTT Exploration and Production and PTT Global Chemical fell between 2.2 percent and 4.7 percent.