Southeast Asia stocks subdued ahead of Yellen speech

Indonesian shares gained nearly 1% on Thursday while other markets in the region were largely lacklustre as investors awaited cues on US interest rates from Federal Reserve chair Janet Yellen's speech on Friday.

Markets expect Yellen to outline a clearer time frame for the next US rate hike after strong housing data this week and upbeat comments by other Fed officials, but many analysts expect her to strike a more neutral stance.

Indonesian stocks posted their first gain in three sessions led by utilities, with Perusahaan Gas Negara (Persero) Tbk PT gaining 4.1%.

Harry Su, an analyst with Jakarta-based Bahana Securities, attributed the gains to a technical rebound, adding that a rise in emerging market exchange-traded funds(ETFs) helped Indonesian ETFs, further boosting the market curve.

Market participants are still hoping that the tax amnesty programme will be a success, propelling the market to be the best performer in the region, Su added.

The Jakarta Composite Index had gained 17.7% this year as of Wednesday's close. 

Vietnamese shares eased after two sessions of gains to end marginally lower, with energy shares tumbling on a decline in global oil prices. Petrovietnam Gas Joint Stock Corp ended 2.4% lower.

The market was cautious ahead of Yellen's speech, with the weakness on Wall Street and lower commodity prices weighing on sentiment, said Fiachra MacCana, head of research at Ho Chi Minh Securities.

"There is a hint of nervousness in the air with investors expecting the speech to lay out a possible rationale for a rate hike before the year-end," MacCana said.