SINGAPORE, May 31 — Most South-east Asian stock markets rose today, as concerns over government formation in Italy eased a day after global financial markets were roiled on fears another election could turn out to be a referendum on the country's euro membership.
Asian stocks rebounded and the euro enjoyed a respite after sinking to its lowest in 10 months after the country's two main anti-establishment parties renewed efforts to form a coalition government.
“For now, the political tension in Italy has waned but I don't think it will dissipate,” said Manny Cruz, an analyst with Asiasec Equities Inc. “The political turmoil in the euro zone will continue to persist until a new coalition government is formed by July.”"
The prospect of early elections in Spain could trigger more uncertainty in the euro zone, Cruz added.
In South-east Asia, Malaysia gained as much as 2.1 per cent in early trade, but was on track to end the month lower.
Utilities and financials rose, with Tenaga Nasional up 7.9 per cent and CIMB Group Holdings climbing 2.4 per cent.
Philippine shares rose as much as 0.9 per cent, with Bank of the Philippine Islands notching up gains of nearly 2 per cent. The country's benchmark index is, however, headed to decline for a fourth straight month.
The Indonesian index extended losses from the previous session to fall 0.7 per cent, and was set to post a fourth straight month of losses.
Shares snapped five sessions of gains yesterday after the country's central bank raised its key interest rate for the second time in two weeks, and flagged more possible hikes.
Telekomunikasi Indonesia slipped 1.1 per cent, while Indocement Tunggal Prakarsa Tbk PT shed 4.2 per cent.
Singapore edged up, while Vietnam climbed 1.6 per cent.
Thai shares ticked up ahead of April trade data expected later in the day. — Reuters
