SE Asia stocks end up as chances of US rate hike abate

SE Asia stocks end up as chances of US rate hike abate

Indonesia at 15-month high

Workers handle steel bars at the Semanggi flyover construction project in Jakarta on Monday. Indonesian shares closed at their highest in 15 months.(Reuters photo)
Workers handle steel bars at the Semanggi flyover construction project in Jakarta on Monday. Indonesian shares closed at their highest in 15 months.(Reuters photo)

Most Southeast Asian stock markets ended higher on Monday as poor US economic growth data tempered expectations about a possible interest rate hike by the Federal Reserve in the next few months.

US gross domestic product rose 1.2% in the April-June period, less than half the 2.6% growth economists had expected.

New York Fed President William Dudley said the Fed should be cautious in raising rates due to lingering risks to the US economy.

The likelihood of the United States not raising rates any time soon puts Asia in a better light as growth rates in the region are higher than expected, said Grace Aller, an analyst with Manila-based AP Securities.

Indonesian shares closed up 2.8% at their highest in 15 months, driven by financial and telecom stocks.

"People are buying heavily into the blue chips that posted big losses last Friday," a trader said.

Indonesia's annual inflation rate in July eased slightly from the previous month, the country's statistics bureau said on Monday. Indonesia's July consumer price index rose 3.21% year on year. 

The Philippines climbed more than 1% led by financials and industrial stocks.

Property developer SM Prime Holdings was among the top gainers in the index, rising as much as 2.7% after posting a 12% rise in first-half core net income.

Vietnam fell as July factory growth dipped to 4-month low after orders slowed.

Thailand ended down dragged by financials and healthcare stocks such as Bangkok Dusit Medical Services Plc.

Southeast Asian stock markets

 

 

Current

Previous

% change

Indonesia

5,316.57

5,215.99

+2.79

Malaysia

1,665.23

1,653.26

+0.72

Philippines

8,069.81

7,963.11

+1.34

Singapore

2,892.52

2,868.69

+0.83

Vietnam

648.38

652.23

-0.59

Do you like the content of this article?
COMMENT