All Southeast Asian stock markets traded firmer on Tuesday, with several near their three-week highs as the global economic outlook looked better after China’s upbeat exports data and receding fears of a US military strike on Syria.
Expectations that the US central bank would delay or be less aggressive in tapering its monthly bond purchases after disappointing US job data also helped boost sentiment.
Jakarta’s Composite Index, which lost 2.9 per cent last week, was up 1.8 per cent as of 0622 GMT at its highest since August 19. It rose nearly three per cent in the previous session.
Banks led the gains with Bank Mandiri Persero Tbk PT rising 8.6 per cent and Bank Rakyat Indonesia Persero Tbk PT up 5.6 per cent.
Indonesian stocks were expected to continue their gains on Tuesday, said Edwin Sebayang, head of research at Jakarta-based MNC Securities.
"But investors should remain disciplined and vigilant," he said, referring to the risks of foreign inflows into stocks, fall in the rupiah, a possible tapering of the US stimulus programme and a military attack on Syria.
Positive sentiment for the rupiah after data on Friday showed gains in foreign exchange reserves was also helping stocks, analysts said.
The Philippines’ main stock index was up 1.8 per cent at a two-week high, while the Thai stock index rose 1.1 per cent to 1,399.41, its highest level since August 19, led by gains in banking shares.
Foreign buying in Thai stocks boosted sentiment, while receding fears of a US military strike on Syria also helped, said Teerada Charnyingyong, a senior strategist at Bangkok-based broker Phillip Securities.
"Foreigners have been buying and we see the resistance level between 1,410 and 1,420," she said referring to the index.
Singapore’s Straits Times index was up 0.4 per cent to a near three week high, while stock indices in Malaysia gained 0.9 per cent to a three-week high.
Vietnam’s main stock index was up 0.6 per cent at mid-day as investors snapped up cheap blue-chip equities following a slump in the index’s biggest firms in the previous session.-- Reuters