SINGAPORE, May 25 — Malaysian shares climbed today after five sessions of losses and Bank Indonesia governor's promise to focus on stabilising the rupiah helped local shares extend gains, while trading was muted in the other South-east Asian stock markets.

Indonesia's newly sworn-in central bank governor, Perry Warjiyo, yesterday said he aimed to use interest rate policy to stabilise the rupiah in the near term and to be "more pre-emptive” and ahead of the curve on monetary settings.

"This comment was very much needed at this point of time, because market concerns were overly amplified, so that comment of how he's going to stabilise the market calmed market fears and has brought back risk appetite," said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.

Indonesian assets have been among the worst hit in Asia this year as higher US yields fuel foreign outflows, amid discouraging domestic economic data. The rupiah has been among the poorest performing currencies in Asia.

The local benchmark equity index, which has shed about 6 per cent year-to-date, was set to extend gains into a fourth straight session, rising about 0.6 per cent.

Meanwhile, Malaysian stocks, which have been reeling under concerns of worrying amounts of debts left behind by the previous government, rose 1.2 per cent and were set to end five consecutive sessions of losses.

Overseas investors sold US$204 million (RM811 million) of Malaysian equities in the first four days of the week.

Financial and telecom stocks climbed as Malaysia's new government vowed to find out where state-fund 1Malaysia Development Bhd's (1MDB) money went and punish those responsible, assuaging investor worries.

Tun Dr Mahathir Mohamad had said Wednesday the government would try to cut the national debt, which he put at 65 per cent of GDP, by reviewing projects and a 10 per cent reduction in cabinet ministers' salaries.

Singapore shares were flat ahead of industrial data expected later in the day, which is expected to show that manufacturing output in April rose 8.3 per cent from last year and 1.2 percent from the prior month, as per a Reuters poll. — Reuters