Most southeast Asian markets closed higher on Tuesday, in line with Asian stocks, as investors picked up beaten down shares that had slumped over the last two sessions after Britain's decision last week to leave the European Union.
Global markets rose for the first time in three days after the Brexit vote hammered US and European bank stocks, and dragged the British pound to a 31-year low.
While one group of investors viewed the Brexit sell-off as an opportunity to come in, those that are risk-averse due to the "potential negative impact on asset values" stayed away, said Jose Vistan, an analyst with Manila-based AB Capital Securities.
Singapore shares rose nearly 1%, their first gain in three sessions, helped by telecom stocks. Singapore Telecommunications Ltd, the city-state's largest telecom company by market capitalisation, rose 2.6%, while StarHub Ltd gained 4.5%.
"Historically, telcos have benefited from low rates/monetary easing," Citi said in a note, referring to the US Fed's decision to hold back on further rate increases and the readiness of a number of central banks to provide liquidity.
Indonesian shares were up nearly 1%, led by consumer cyclicals and healthcare stocks such as Astra International Tbk PT and Kalbe Farma Tbk PT.
Sentiment was also buoyed after Indonesia's parliament approved an amnesty bill that would allow low payment rates for taxpayers who declared untaxed wealth.
"It (tax amnesty) is directly positive for construction and indirectly positive for property, banks, along with the domestic economy," Jakarta-based Trimegah Securities said in a note.
Vietnam closed 0.1% higher, with Vinamilk, the country's biggest firm by market value, notching up its biggest percentage gain since November, after the company's board decided to remove its 49% foreign ownership cap.
Bucking the trend, Philippine shares closed 0.6% lower, dragged down by consumer non-cyclicals. JG Summit Holdings Inc fell 1.1%.
The Philippine market "is being influenced by external developments and the volatility abroad is affecting sentiment for risk assets," Vistan said, adding that volatility in currency markets further dampened sentiment.
Stocks in Kuala Lumpur ended 0.3% higher.
Earlier, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%.