Southeast Asian stock markets ended flat to higher on Tuesday on optimism over prospects of better global economic growth while investors shrugged off weaker-than-expected trade data from China.
Ratings agency Fitch raised its 2017 world GDP growth forecast to 3% from 2.9% in June, with the revisions led by emerging markets and China in particular.
“I guess it (Fitch’s outlook lift) boosted confidence in the markets,” said Lexter Azurin, a senior analyst with Manila-based AB Capital Securities.
That provided some cheer on a day when both rose much less than expected, breaking a run of better numbers from the Asian giant that had fuelled optimism on global growth and a rally in industrial commodity prices.
In Southeast Asia, Indonesian shares recovered from three sessions of falls to end 1.1% higher, logging their best day in a month. Gains were led by financials and consumer staples.
Philippine shares closed marginally lower, snapping three straight sessions of gains, after trading in positive territory for most parts of the day.
Utilities and consumer staples led the decline with Aboitiz Equity Ventures Inc closing 3.1% lower.
The Philippines followed the US market after the Dow went up last night to reach a record high, said Azurin, adding that the drop during the pre-closure was due to last-minute selling.
Vietnam shares rose as much as 0.5% to a fresh nine-year high before closing the session slightly lower, snapping three consecutive sessions of gains. Financials and consumer staples were among the top losers.
MSCI’s broadest index of Asia-Pacific shares outside Japan proved relatively resilient, inching up 0.2% and back toward decade highs.
Southeast Asian stock markets