BANGKOK, Nov 25 — Malaysian shares posted their best gain in almost 15 months yesterday as the government’s fuel pricing plan allayed concerns over the country’s budget deficit while Singapore retreated despite data showing inflation near a five-year low in October.

Others in Southeast Asia mostly finished higher in line with Asian markets as the prospect of further policy stimulus in China and Europe whetted risk appetite globally.

Kuala Lumpur’s composite index rose 1.36 per cent, its biggest single-day rise since August 30, 2013. Shares of Sapurakencana Petroleum jumped 4.2 per cent and Tenaga Nasional was up 3.7 per cent, among top gainers.

The ringgit also outperformed regional peers.

The Malaysian bourse said foreign investors bought shares worth a net RM108 million (US$32.23 million), their first in four sessions. They sold a combined RM157 million (US$46.85 million) in three sessions from tomorrow.

Malaysia will scrap subsidies for petrol and diesel from December 1, the government said on Friday, a bold move that could potentially result in some RM20 billion (US$5.97 billion) savings annually.

“The decision to float is timely as the switch should have a benign impact on inflation given that the average market price is close to the current fixed retail price ... Furthermore, the government will now have more fiscal space and more control over the fiscal deficit,” CIMB said in a report.

Singapore’s Straits Times Index closed down 0.1 per cent at 3,340.53, just shy of an intra-day low after earlier climbing to the highest since September 12.

Singapore’s headline consumer inflation in October rose 0.1 per cent from a year ago, the lowest since December 2009, compared with a Reuters poll of an increase of 0.6 per cent. — Reuters