Thai stocks close highest since March 6
published : 1 Jun 2020 at 17:47
The Stock Exchange of Thailand index and other Southeast Asian markets rose on Monday after US President Donald Trump left the trade deal with China intact despite escalating tensions over Hong Kong's autonomy, with signs of a gradual recovery in the Chinese economy also helping sentiment.
In a move that relieved markets, which were impacted over the past year by the ups and downs of US-China relations, Trump stopped short of an immediate end to Hong Kong's privileges, but said he would start the process.
Adding to cheer was an official survey from China, the region's biggest trading partner, which showed an increased momentum in its services and construction sectors in May. In Thailand and the Philippines, it was the first day after lockdowns were eased.
In Thailand, the parliament on Sunday passed a 1.9 trillion baht package to support its virus-hit economy, driving the local benchmark to its highest close since March 6. Gains were underpinned by energy stocks.
Singaporean stocks closed up 1.6%, with conglomerates Jardine Matheson Holdings Ltd and Jardine Strategic Holdings Ltd adding 2.8% and 3.4%, respectively.
In Malaysia, rubber glove maker Top Glove Corp, up nearly 17%, sent the index to its highest close in three months. An increase in demand for gloves due to Covid-19 was stoking optimism over the firm's third-quarter earnings, set to be released on June 18 - according to researchers at CGS-CIMB Securities.
Philippine equities, which rose 1.6%, hit their highest closing level since mid-April, with big cap financials such as Security Bank Corp and Metro Pacific Investments Corp being among the top gainers.
Both the Philippine and Malaysian indexes extended their winning streak to a fourth session, while for Vietnam, it was a third straight day of gains.
Indonesian markets were closed for a holiday.