The Stock Exchange of Thailand index rose, while most Southeast Asian stock markets fell on Wednesday after the International Monetary Fund (IMF) said risks to the global financial system could increase if pressures in emerging markets escalate or global trade relations deteriorate further.
The SET index closed 24.90 points or 1.47% higher, boosted by energy stocks PTT Plc and PTT Exploration and Production Plc.
The recent fall seems to have made Thai equities less expensive. So, some buying is seen from investors who look long-term for tax benefits, said Teerada Charnyingyong, an analyst with Phillip Capital Thailand.
Malaysian shares recorded their lowest close since July 16 on concerns over possible new taxes, while Singapore extended losses to a fifth straight session, dragged by financials.
The IMF, a day after cutting its global growth forecasts, said in a research report on Wednesday that emerging market countries excluding China could face debt portfolio outflows of up to US$100 billion, a level last seen during the 2008 global financial crisis.
The Malaysian index fell 2.2%, extending losses to a sixth session, a day after Prime Minister Mahathir Mohamad said the country may introduce new taxes as it struggles with liabilities of around 1 trillion ringgit ($241.05 billion).
Telekom Malaysia plunged 15.8 % while Axiata Group slumped 11.7%.
Singapore shares closed 1.1% lower, with DBS Group Holdings and Oversea-Chinese Banking Corp declining 1.2% and 0.9%, respectively.
"Asia stock traders remain jaded based on substantial trade war risks; making it very challenging to have a constructive view on investments in general ...," OANDA Head of Trading - APAC, Stephen Innes said in a note.
Philippine shares fell 0.8% to their lowest in three-and-a-half months, weighed down by financial and industrial stocks. BDO Unibank dropped 2.7% while JG Summit Holdings slipped 3.1%.
"Being an export-oriented country, a slowdown in projected global growth is going to affect the external segment of our economy which is mostly exports and services," said Jose Vistan, research head at AB Capital Securities.
Data released earlier in the day showed Philippines trade deficit stayed well above $3 billion for the fifth straight month in August.
Vietnam shares hit a three-week closing low, while Indonesia shares gained for a third straight session.