SE Asia stocks higher on Wall Street rally, stimulus hopes
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SE Asia stocks higher on Wall Street rally, stimulus hopes

A woman walks past an electronic board showing Hong Kong share index at a commercial building in Hong Kong on Tuesday. Southeast Asian stocks closed higher in line with Asian peers. (AP photo)
A woman walks past an electronic board showing Hong Kong share index at a commercial building in Hong Kong on Tuesday. Southeast Asian stocks closed higher in line with Asian peers. (AP photo)

Southeast Asian stocks closed higher on Tuesday as risk appetite improved after an overnight rally on Wall Street and as a new round of monetary easing from Japan raised expectations of more stimulus from global policy makers.

The US benchmark S&P 500 stock index set record intraday and closing highs on Monday as last week's strong monthly US jobs report worked its way into financial markets.

In Japan, Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending after a crushing election victory over the weekend as evidence mounted the corporate sector is floundering due to weak demand.

"Markets seem to be bullish about more stimulus coming from Japan," said a Singapore-based analyst who did not want to be named.

While Abe did not give details on the size of the package, it is widely expected to reach 10 trillion yen ($97.5 billion).

Separately, the Bank of England meets on Thursday, and Governor Mark Carney has already signalled that the BoE will cut rates below their already record low levels over the summer and possibly resume its 375 billion-pound bond-buying programme.

Indonesia extended gains to a more than 1-year high, driven by financial stocks. It closed 0.6% higher.

Bank Central Asia and Bank Danamon Tbk gained 1.9% each. Bank Mandiri (Persero) Tbk PT finished about 5% higher.

Bank Central Asia and Bank Danamon are expected to be among lenders named by Indonesia's government to manage funds repatriated due to a tax amnesty that is expected to attract billions of dollars in assets.

The Philippine index rose 0.9%, with financial stocks accounting for more than half the gains.

The Philippines' central bank governor said its monetary policy stance remains appropriate, citing ample liquidity in the market and manageable inflation.

Metropolitan Bank and Trust Co finished 3.3% higher.

Singapore's Straits Times Index gained 0.9%, Malaysia was flat, while Vietnam recovered in late trading to close 1% higher.

The Stock Exchange of Thailand and other Southeast Asian markets rose in line with their Asian peers.

Asian shares rose, with MSCI's broadest index of Asia-Pacific shares outside Japan climbing 0.9% to its highest since late April.

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