BANGKOK, Jan 17 – Southeast Asian stock markets rose today as above-forecast GDP growth in China eased worries about the global economy, luring buyers to regional big caps and resource shares.
Consumer goods and financial stocks also outperformed as they are expected to benefit from resilient domestic demand in the region.
Gains in major world stock markets spurred late buying, with US stock index futures pointing to a higher start today and European shares hitting a five-month high.
Singapore shares rose to two-month highs, finishing up 2.2 per cent. Thai stocks climbed 1.9 per cent and the Philippines rose 1.4 per cent, pushing it close to last week’s record high.
Singapore-listed commodity trading firm Noble Group Ltd surged 5.9 per cent and Thailand’s biggest energy firm, PTT Pcl, rose 2.8 per cent.
“It’s pent-up demand for risk assets from funds that have sold off shares due to the weak global outlook,” said Bangkok-based Viwat Techapoonphol, a strategist at broker Tisco Securities, noting there was also short-covering.
Asian shares elsewhere gained, with the MSCI’s broadest index of Asia Pacific shares outside Japan surging 2.7 per cent by 0948 GMT.
China’s gross domestic product grew at an annual rate of 8.9 per cent in the fourth quarter, its weakest in 2-1/2 years and down from 9.1 per cent in the previous quarter, but it beat expectations for an 8.7 per cent rise.
“In our view, China has to get used to a reading below 9 per cent. Recently published economic figures indicate that China is not able to decouple from a cooling world economy,” said Joerg Zeuner, Chief Economist of VP Bank Group.
But he added: “Although growth rates could fall in the direction of 8 per cent, the risk of a considerable downturn is not likely.”
CONSUMER, FINANCIAL SHARES
Inflows appeared to favour Southeast Asia’s consumer and financial stocks as the region’s economy remained resilient and companies that tap domestic consumption are well placed to weather the euro zone’s debt problems and a global economic slowdown.
Jakarta-based broker Bahana Securities said investors should prefer companies that rely on domestic economies.
“Indonesia is one of the most well-insulated, domestically driven economies in the region, making it relatively immune from external shocks ... At this stage of the cycle, we retain our domestic plays as top picks,” said head of research Harry Su.
Among actively traded shares, Indonesia’s PT Astra International Tbk rose 1.4 per cent, Malaysia’s Malayan Banking Bhd climbed 1.2 per cent and Philippine Metropolitan Bank and Trust Co surged 3.7 per cent.
Foreign money, seeking good returns from emerging markets, sent Philippine shares to all-time highs last week, and it is Asia’s fourth-best performer this year after India. Singapore is third best. – Reuters
