SE Asia stocks rise, Indonesia hits 14-month high

Most Southeast Asian stocks closed higher on Wednesday, with Indonesia climbing to a near 14-month high, extending the rally into a fourth session on continued investor risk appetite.

Indonesia's main index closed up 1.4% to its highest close since May 27, 2015, led by consumer staples and financials.

The broader risk-on sentiment still remains intact, said Taye Shim, analyst, Jakarta-based Daewoo Securities.

"However, we see near-term challenges as investors are likely to seek evidences like Q216 corporate earnings, GDP growth, fund repatriation etc to justify the recent price rally."

Investors are also expected to keep an eye out for a decision on interest rates by the Indonesian central bank on Thursday.

In a Reuters poll, 11 of 16 economists said Bank Indonesia (BI) will cut the benchmark 12-month reference rate by 25 basis points to 6.25% to help spur economic growth.

The European Central Bank also plans to have a policy meeting on Thursday and is not expected to change its monetary stance.

Governments in China, Japan and Britain have already started easing their fiscal stance or hinted at plans to do so.

Cigarette makers Hanjaya Mandala Sampoerna Tbk PT  and Gudang Garam Tbk PT gained 6.2% and 4.4%, respectively.

Singapore stocks finished up 0.9%, driven by financials and consumer services. Among the biggest gainers, Genting Singapore rose 1.9%.

Malaysia finished flat, shrugging off government data showing a fourth consecutive month in which the inflation rate has slowed.

Vietnam extended losses for a second day, falling 1.1%, dragged down by financials and energy stocks. Petrovietnam Gas Joint Stock Corp lost 2.3%.

Philippines ended 0.2% higher.