SE Asia stocks higher but geopolitical risks cap gains

SE Asia stocks higher but geopolitical risks cap gains

People watch a TV news programme showing a file image of the USS Carl Vinson aircraft carrier at Seoul Railway Station on Wednesday. Tensions in the Korean Peninsula kept a lid on stock gains. (AP photo)
People watch a TV news programme showing a file image of the USS Carl Vinson aircraft carrier at Seoul Railway Station on Wednesday. Tensions in the Korean Peninsula kept a lid on stock gains. (AP photo)

Most Southeast Asian stocks settled higher on Wednesday as energy shares climbed on reports that Saudi Arabia was lobbying oil producers to extend an output cut, but the rising geopolitical woes curbed gains.

Brent oil extended gains into an eighth straight session on Wednesday, having recovered nearly all last month's losses, after Saudi Arabia was said to be pushing its fellow Opec members and some rivals to prolong supply cuts beyond June.

However, heightened geopolitical tensions kept a lid on gains, dampening an otherwise bright outlook for global economic growth encouraging momentum in export-reliant Asia.

North Korean state media warned of a nuclear attack on the United States at any sign of American aggression, as a US Navy strike group steamed toward the western Pacific.

Meanwhile, US Secretary of State Rex Tillerson was in Moscow to denounce Russian support for Syria's Bashar al-Assad, raising the stakes in the Middle East.

Malaysia was the biggest gainer in the region, hitting a one-week closing high, with telecom stocks buoying the index.

Telecom company Axiata Group Bhd ended 2.2% higher.

Singapore shares reversed early losses to post their best closing in more than a week, boosted by financials, with Oversea-Chinese Banking Corp gaining 1.2%.

Meanwhile, Vietnam shares dropped 0.8%, dragged by consumer stocks.

"Minor movements suggest a very mixed view with some investors happy to buy on dips as they expect a positive Q1 earnings season and good news on FOL (foreign ownership limit) from some companies at the upcoming AGMs (annual general meeting)," said Fiachra Mac Cana, head of research, Ho Chi Minh Securities.

Southeast Asian stock markets

 

 

Current

Previous

% change

Indonesia                

5,644.15

5,627.93

+0.29

Malaysia

1,744.08

1,735.84

+0.47

Philippines

7,629.64

7,601.40

+0.37

Singapore

3,186.01

3,174.75

+0.35

Vietnam

725.58

731.33

-0.79


Do you like the content of this article?
COMMENT

Cabinet approves B1.24 tn borrowing in 2022 fiscal year

The Cabinet on Tuesday approved new borrowing of 1.34 trillion baht in the 2022 fiscal year starting in October, a government spokesperson said.

17:04

Cambodia raises minimum textiles wage by $2

PHNOM PENH: Cambodia on Tuesday raised the minimum monthly wage for workers in its key textiles and footwear industry by $2 to $194, effective January next year, shy of a $12 rise sought by major unions.

17:00

Police: 26 protesters arrested Monday

Twenty-six protesters were detained for breaches of the emergency decree and other laws on Monday, when Thalufah and Thalugaz groups rallied at different spots in Bangkok, Metropolitan Police spokesman Pol Maj Gen Piya Tawichai said on Tuesday.

15:58