MANILA, June 1 — Philippine shares rose today, heading for their first gain in three sessions and outperforming other South-east Asian markets, after the lower house of Congress approved a much-anticipated tax reform bill yesterday.

The bill, yet to be published and which still needs Senate approval, is critical to President Rodrigo Duterte's economic programme, which focuses on infrastructure spending and fiscal efficiency to lift growth to as much as 8 per cent before his six-year term ends in 2022.

The Philippine benchmark rose as much as 0.75 per cent, its biggest intraday percentage gain since May 16, with real estate company Ayala Land climbing as much as 2 per cent and telecom firm PLDT Inc jumping nearly 3 per cent.

“Foreign and local funds alike have long been waiting for this (bill) to pass in the Congress,” said Rachelle Cruz, an analyst with AP Securities, adding that its passage would provide the boost that the market needs to go above the 8,000 level.

The property sector will also gain as the Department of Finance is looking to revive REITs once the bill is passed, she said.

MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat amid conflicting signals on the health of China's manufacturing sector.

China's manufacturing activity contracted in May for the first time in 11 months and companies shed more jobs as demand weakened and shrinking factory prices dented profits, a private survey showed today.

The findings sharply contrast with official readings yesterday which showed steady manufacturing growth.

Singapore shares hit their highest in nearly a week, boosted by market heavyweights Singapore Telecommunications (SingTel) and Jardine Matheson Holdings.

SingTel was headed for a fourth straight session of gains, while Jardine Matheson climbed to its highest in more than two weeks.

News that internet provider MyRepublic Ltd is seeking private equity backing for local wireless carrier M1 Ltd has shored up buying interests in telecom stocks, said Wong Kok Hoong, sales trader at Maybank Kim Eng Securities Pte Ltd.

Malaysian shares fell to their lowest since May 5, with telecom firm Axiata Group hitting a two-and-a-half-month low.

Indonesia was closed for a holiday. — Reuters