SINGAPORE, Aug 9 — South-east Asian stocks were largely up today as China's consumer inflation eased in July, lifting broader sentiment across the region on hopes of further policy easing if needed in the world's second largest economy.

China's consumer price index (CPI) rose 1.8 per cent in July from a year earlier, in line with analysts' expectations.

Consumer inflation has remained well below China's official target of around three per cent in 2016, despite concerns that severe summer flooding, which has disrupted public infrastructure and agricultural production, would increase inflationary pressures.

“The lower Chinese inflation data gives investors something to look forward to in terms of further policy easing,” said Victor Felix of AB Capital Securities Inc in Manila.

Last week, China's top economic planner called for the central bank to cut interest rates and bank reserve

requirements, but later removed the remarks in an updated statement posted on its website.

Singapore led the region with a gain of 1.5 per cent, hitting a 1-week high led by bluechips such as Jardine Cycle and Carriage Ltd and Singapore Telecommunications

Indonesian stocks hit its highest since April 2015 before slipping marginally on positive momentum from a government tax amnesty programme that is expected to boost the corporate bond market.

Thai shares extended a rally into a fifth straight session, hitting a 15-month high as energy stocks gained. Thai Oil PCL rose two per cent after booking a higher quarterly profit yesterday.

The Philippine index hit a one-week high after a bunch of corporate earnings boosted sentiment. Petron Corp,

the top gainer on the index, reported strong half-yearly results yesterday.

“I think here in Philippines, the movement is more focussed on the corporate earnings this week,” said Grace Aller of AP Securities in Manila. Lower Chinese inflation has also boosted sentiment, she added.

Vietnam shares rose more than one per centt, helped by a rally in the energy sector on gains of nearly three per cent overnight in global crude oil prices. Petrovietnam Gas Joint Stock Corp was up 1.7 per cent.

Crude prices however edged lower today on continued worries over a global oil glut and as investors took profits on today's gains.

Malaysia drfited lower, dragged down by consumer non-cyclicals, with British American Tobacco (Malaysia) Berhad among the top losers.

Asian shares gained, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1 per cent, having already risen for three sessions in a row. — Reuters