SINGAPORE, Dec 17 — Southeast Asian markets gained today, with most recovering from over three-month lows, encouraged by upbeat data from the United States and the euro zone ahead of a key US Federal Reserve meeting starting later in the day.
Stock indexes in Thailand, Indonesia, and Singapore recovered from their lowest close since the first week of September, hit in the previous session.
The Philippine stock index, outperformed the region, jumping 2 per cent to its highest level since December 9, led by a 2.9 per cent gain in property firm Ayala Land Inc and a 3.1 per cent rise in Bank of the Philippine Islands.
US manufacturing output rose for a fourth straight month in November, while surveys showed euro zone businesses ended the year on a high as new orders surged, bolstering investor confidence about the global economy ahead of the Fed meeting.
Investors have been nervous about when the Fed will start tapering its US$85 billion (RM275 billion) a month bond-buying programme, a major driver of global risk assets in recent years.
A majority of economists polled earlier expected the taper to start in March, but a recent run of upbeat economic data from the US has shortened the odds on an announcement to this week’s two-day meeting concluding tomorrow, or in January.
Malaysia’s main index hit an intraday high of 1851.94 points before closing at 1,850.90, up 0.7 per cent, led by local institutional buying. Foreign investors were net sellers of US$33.41 million worth of shares.
Indonesia’s main index gained 1.4 per cent, rising from the previous session’s more-than-three-month-low close, led by financials, while Thailand’s SET index ended 0.7 per cent higher, also led by financials, recovering from its lowest close in the previous session since September 5.
Singapore shares closed up 0.5 per cent led by a 1.4 per cent rise in Singapore Telecommunication Ltd. It recovered from a more-than-three-month closing low, but trading was slow as investors awaited the outcome of the Fed meeting.
Vietnam’s benchmark VN index rose 0.72 per cent on bargain hunting in cheap stocks, after it fell to a one-month low yesterday on selling by an exchange-traded fund. — Reuters
