By Shashwat Pradhan
June 12 Most Southeast Asian stock markets edged
up on Monday ahead of a U.S. Federal Reserve policy meeting that
could give hints on the pace of further rate tightening in the
months to come and next year.
With the Fed widely expected to raise interest rates at its
two-day meeting that ends on Wednesday, investors will be
focussing on whether the central bank thinks the U.S. economy is
robust enough to withstand further rate hikes through 2017 and
how it plans to whittle down its massive balance
"A 25 basis point rate hike is assumed to be a done deal for
the June FOMC (Federal Open Market Committee); with interest
rate markets ascribing over 90 percent probability," Mizuho Bank
said in a note.
"This means a 25 basis point hike is baked into market
(prices), and so failure to yank the trigger will result in a
dovish knee-jerk reaction; but this is the outside risk."
MSCI's broadest index of Asia-Pacific shares outside Japan
, however, was down 0.8 percent as the region's
technology heavyweights were knocked lower by a slide in U.S.
Singapore shares rose as much as 0.5 percent to a
four-week high, driven by financials, before paring some of the
In other markets, Indonesia was up 0.5 percent with
consumer stocks driving the gains. Investors are awaiting Bank
Indonesia's policy rate decision expected later this week.
"(We) expect Bank Indonesia to keep its policy rate steady
this week. While Q1 GDP growth came in slightly disappointing,
there are enough data to suggest stronger growth momentum in
H2," DBS Group said in a note.
Vietnam shares rose 0.5 percent, led by FLC Faros
Construction, which jumped as much as 6.9 percent to
post its biggest intra-day percentage gain in more than three
FLC Group, whose chairman holds a majority stake in
FLC Faro Construction, said it is working with Airbus
to lease about seven aircraft by 2018. FLC Group aims to start a
new airline that could take to the skies for the first time
early next year.
Bucking the trend, Thai shares slipped, dragged down
by telecom and healthcare stocks.
The Malaysian and Philippine markets were closed for local
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SOUTHEAST ASIAN STOCK MARKETS: Change at 0445 GMT
Market Current previous Pct Move
Singapore 3257.24 3254.19 0.09
Bangkok 1565.23 1566.65 -0.09
Jakarta 5704.928 5675.523 0.52
Ho Chi Minh 753.41 749.72 0.49
Change so far this year
Market Current End 2016 Pct Move
Singapore 3257.24 2880.76 13.07
Bangkok 1565.23 1542.94 1.44
Jakarta 5704.928 5296.711 7.71
Ho Chi Minh 753.41 664.87 13.32
(Reporting by Shashwat Pradhan in Bengaluru; Editing by