August 19, 2019 / 4:20 AM / 3 months ago

SE Asia Stocks-Most gain as global stimulus hopes lift risk sentiment

    * China, Germany, Thailand line up policies to spur growth
    * Indonesian shares hit over two-week high
    * Thai stocks gain despite Q2 GDP growth slowest in nearly 5
years

    By Niyati Shetty
    Aug 19 (Reuters) - Most Southeast Asian stock markets gained
on Monday, as hopes that central banks around the world would
unleash new stimulus to boost growth eased concerns over a
global recession.  
    Such hopes found support from the Chinese central bank's
interest rate reforms over the weekend, seen lowering corporate
borrowing costs, and reports of new fiscal stimulus in Germany. 

    The Sino-U.S. trade dispute has dampened growth in Southeast
Asian economies, and any policy support by the region's major
trading partner - China - to shore up domestic demand will help
bring buyers back to the equities market. 
    Singapore stocks clawed back ground from previous
session's losses, supported by financials. Lender
Oversea-Chinese Banking Corporation Ltd added 0.8%,
while peer United Overseas Bank Ltd gained 0.4%. 
    Asian markets may gain "on optimism that German if not
Eurozone policy stimulus could be forthcoming," OCBC Bank said
in a note, adding that, "Singapore may trade firmer between a
3,100-3,150 range amid positive Friday cues from Wall Street."
    The Indonesian benchmark index advanced to touch its
highest in more than two weeks, buoyed by gains in consumer and
financial stocks. Instant noodles maker Indofood CBP Sukses
Makmur rose as much as 4.3%, while the Bank Central
Asia added 1.2%.
    The archipelago's president on Friday proposed $178 billion
budget for 2020, that targeted a slightly optimistic gross
domestic product growth of 5.3% for the year.
    Also soothing markets, U.S. President Donald Trump and top
White House officials on Sunday dismissed economic growth
concerns, saying they saw little risk of recession. Investors
were rattled last week after signals from the bond market
sparked fears of a sharp global slowdown.   
    Thai equities gained 0.8% even as government data on
Monday showed the trade-dependent economy grew at its slowest
annual pace in almost five years in the second quarter on lower
exports and soft domestic demand.
    The country's finance minister on Friday, however, said
Thailand was planning a $10 billion stimulus package to shore up
the slackening economy.
    The financial and energy sectors supported Thai shares, with
Siam Commercial Bank PCL and conglomerate PTT PCL
 adding 2.8% and 1.2%, respectively.     
    The Philippine index and Vietnam shares traded
marginally higher, while Malaysian stocks edged down. 
        
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0410 GMT
    
 Change on the day                                
 Market                 Current   Previous close  Pct Move
 Singapore              3131.98   3115.03         0.54
 Bangkok                1637.71   1631.4          0.39
 Manila                 7813.03   7795.98         0.22
 Jakarta                6306.832  6286.657        0.32
 Kuala Lumpur           1597.97   1599.22         -0.08
 Ho Chi Minh            981.84    980             0.19
                                                  
 Change so far in 2019                            
 Market                 Current   End 2018        Pct Move
 Singapore              3131.98   3068.76         2.06
 Bangkok                1637.71   1563.88         4.72
 Manila                 7813.03   7,466.02        4.65
 Jakarta                6306.832  6,194.50        1.81
 Kuala Lumpur           1597.97   1690.58         -5.48
 Ho Chi Minh            981.84    892.54          10.01
 
 (Reporting by Niyati Shetty; Editing by Sherry Jacob-Phillips)
  
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