SE Asia Stocks-Most rise as China manufacturing buoyant; Indonesia at 6-wk high

By Chandini M
July 3 (Reuters) – Most Southeast Asian stock markets rose
on Monday, tracking broader Asia, as Chinese factory activity
showed a surprise recovery, adding to the evidence of steadying
growth in the world’s second largest economy.
Indonesia was the top gainer in the region, with the Jakarta
Composite Index rising as much as 0.7 percent to hit a
six-week high, as trading resumed after a long holiday.
Sentiment in Southeast Asia was underpinned by a private
sector survey that showed China’s manufacturing engine cranked
back into growth mode in June, expanding at the fastest pace in
three months after unexpectedly contracting in May.
“China’s manufacturing PMI rebound is a silver lining and
overall inflation is likely to be contained despite bottoming,”
Mizuho Bank analysts said in a note.
Meanwhile, factory output contracted in Indonesia and
Malaysia in June, while that in Vietnam expanded at a faster
pace than the previous month, according to IHS Markit purchasing
managers’ indexes released on Monday.
In Indonesia, telecom stocks, financials and non-cyclical
consumer goods companies contributed most of the gains.
The country’s annual inflation rate accelerated slightly in
June as demand increased in the days leading to the Eid al-Fitr
celebrations at the end of the month, the statistics bureau
said.
Singapore shares rose 0.2 percent, with real estate
stocks dominating gains on the benchmark.
Malaysian shares fell as much as 0.4 percent, with
telecom stocks dragging the index down. Maxis Bhd fell
as much as 1.1 percent to its lowest in over a year.
Sentiment was also affected by Malaysian palm oil futures,
which fell from a near two-week high on Friday, reversing gains
made earlier, as they were weighed down by weaker exports and
expectations of rising production.
Philippine index fell as much as 0.6 percent, hurt by
industrials and telecommunication stocks.
The new Philippine central bank governor, Nestor Espenilla,
said a cut in banks’ required reserves is not going to happen
immediately. The country’s reserve requirement ratio is
currently at 20 percent, one of the highest rates in the world.
BDO Unibank Inc fell 1.5 percent and conglomerate
SM Investments Corp dropped 0.9 percent.

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SOUTHEAST ASIAN STOCK MARKETS: Change at 0500 GMT

Change on the day
Market Current Previous Close Pct Move
Singapore 3229.5 3226.48 0.09
Bangkok 1577.17 1574.74 0.15
Manila 7816.53 7843.16 -0.34
Jakarta 5862.777 5829.708 0.57
Kuala Lumpur 1763.11 1763.67 -0.03
Ho Chi Minh 777.9 776.47 0.18

Change so far
this year
Market Current End 2016 Pct Move
Singapore 3229.5 2880.76 12.11
Bangkok 1577.17 1542.94 2.22
Manila 7816.53 6840.64 14.27
Jakarta 5862.777 5296.711 10.69
Kuala Lumpur 1763.11 1641.73 7.39
Ho Chi Minh 777.9 664.87 17.00

(Reporting by Chandini Monnappa; Editing by Amrutha Gayathri)


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