SE Asia stocks gain as China data cheers

Most Southeast Asian stock markets closed higher on Monday tracking strong broader peers as investors took a surprise recovery in Chinese factory activity as evidence of steadying growth in the world's second largest economy.

A private survey showed that China's manufacturing engine cranked back into growth mode in June, expanding at the fastest pace in three months after unexpectedly contracting in May.

"China's manufacturing PMI rebound is a silver lining and overall inflation is likely to be contained despite bottoming," Mizuho Bank analysts said in a note.

Reopening after a long holiday, the Jakarta Composite Index closed at a record high with telecommunication and financial stocks leading gains.

Telekomunikasi Indonesia (Persero) TBK PT rose 6% to end at a record high.

Indonesia's annual inflation rate accelerated slightly in June as demand increased in the days leading to the Eid al-Fitr celebrations at the end of the month, the statistics bureau said.

Philippine stocks closed 0.3% higher, led by real estate and financials. Property developer Ayala Land closed 1.6% up while Bank of the Philippine Islands ended the day 0.6% higher.

Malaysian shares gained 0.3% as consumer and materials stocks rose.

Vietnam extended gains into a fourth consecutive session and closed the day 0.3% higher.

Singapore ended marginally lower, hurt mainly by financial stocks.