SE Asia Stocks: Mostly up on China spending hopes
BANGKOK, May 29 – Most Southeast Asian stocks ended firmer today on hopes that China might launch spending measures to boost growth, but trading volumes and gains were capped as concerns over a euro zone recovery flared after a surge in Spanish borrowing.
Investors were still cautious, waiting for clues from the euro zone, which is struggling to overcome its debt crisis, though an opinion poll pointed to the possibility of the formation of a Greek government committed to keeping the country in the euro zone in a June 17 election.
“China spending more is always welcome news for equities,” said Song Seng Wun, an economist at CIMB, based in Singapore.
“Optimism has returned at least for now. But a long wobbly road is ahead,” he said referring to the euro zone crisis.
Stocks in the Philippines rose 1.4 per cent to hit a two-week high after Moody’s Investor Service revised the country’s rating outlook to positive from stable.
Energy shares lifted Thailand’s benchmark by 1.2 per cent in heavy trading, extending gains for the fourth session, while Singapore shares closed 0.5 per cent firmer.
Malaysian shares ended up 0.7 per cent and the Indonesian benchmark closed steady though the two countries saw net foreign selling of US$2.13 million and US$44.18 million respectively.
Shares in Vietnam bucked the trend, falling 0.9 per cent on concerns over weak earnings and a sluggish economy. – Reuters