SINGAPORE: Southeast Asian stock markets posted strong gains on Monday as risk appetite picked up amid easing geopolitical tensions on the Korean peninsula, with bank stocks lifting Singapore to its highest close in 10-1/2 years.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1 percent, following a historic summit between North Korean leader Kim Jong Un and South Korea’s Moon Jae-in last week at which they vowed “complete denuclearization”. The two countries also announced on Monday initial steps toward reconciliation.
Singapore shares marked a closing peak since November 2007, led by gains in financials. The index gained 5.4 percent this month, its best since January 2017, after posting losses in February and March this year.
Lender DBS Group Holdings was the biggest contributor to the benchmark, rising 2.8 percent to an all-time closing high, after reporting a record profit earlier in the day.
Singapore’s total bank lending rose 1.6 percent in March from a month earlier as lending to financial institutions increased, central bank data showed.
The city-state’s other big banks, United Overseas Bank Ltd and Oversea-Chinese Banking Corp, also marked all-time closing highs.
Philippine shares rose 1.3 percent to their highest in two weeks, but still marked a 2 percent drop for April.
The session’s gains were led by industrials, with heavyweights SM Investments Corp climbing 3.3 percent and while JG Summit Holdings rising 2.2 percent.
Philippine annual inflation in April is likely to settle within a 3.9-4.7 percent range, reflecting higher oil and rice prices and electricity rates, the central bank said.
Indonesian shares closed 1.3 percent higher, but posted a 3 percent drop on the month.
The country’s index of 45 most liquid stocks was up 1.4 percent, but fell 4.7 percent over the month.
Malaysian shares rose 0.4 percent on broad-based gains, also ending the month 0.4 percent higher.
The Thai stock market was a mixed bag as losses in healthcare outpaced gains in real estate stocks. The benchmark ended the month largely flat.
Thailand’s private consumption rose slightly in March from the previous month but investment contracted, central bank indexes showed, suggesting growth in Southeast Asia’s second-largest economy is not firm yet.
Vietnam was closed for the day on account of a holiday.
Southeast Asian markets will be closed on Tuesday owing to Labour Day.
Source: Brecorder
