SE Asia Stocks-Recover after BOJ modifies policy framework
By Aparajita Saxena Sept 21 (Reuters) - Southeast Asian stock markets recouped early losses on Wednesday, tracking gains in Japanese stocks after the Bank of Japan announced a major overhaul of its monetary policy, shifting to a yield curve target. The BOJ, at its policy meeting on Wednesday, decided to adopt a target for long-term interest rates. It maintained its interest rates at 0.1 percent negative, and said it would continue to buy long-term government bonds at a pace so that the balance of its holdings increases by 80 trillion yen ($781 billion) per year. The Nikkei and the Topix rallied after the BOJ said 2.7 trillion yen of its ETF purchases will be linked to the index. Immediately after the BOJ decision, MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 percent. Singapore shares were down 0.2 percent after declining as much as 0.6 percent earlier in the day. Losses were led by United Overseas Bank Ltd and Oversea-Chinese Banking Corp Ltd, and the index was on track to snap three sessions of gains. Philippine stocks were lower after two session of gains with SM Investments Corp shedding 1.3 percent. Trading was lacklustre with only 0.2 times of the 30-day average volume happening in the morning session. The Philippine central bank is expected to stand pat on monetary policy on Thursday, but may raise interest rates next year with inflation forecast to pick up as the impact of low oil prices wanes. Indonesian shares fell as much as 0.5 percent, their biggest percentage loss in a week, with Bank Harda Internasional Tbk PT waning 10 percent. Indonesia's central bank likely will cut its benchmark interest rate for the fifth time this year on Thursday to try to spur economic growth, a Reuters poll showed. The decision is due after 0700 GMT on Thursday. Bucking the trend, Thai shares bounced back from the previous session's losses, propped up by financials. Real-estate company U City PCL led the gains. Malaysia remained flat after its consumer price index in August increased 1.5 percent from a year earlier, faster than the previous month's pace, government data showed on Wednesday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change at 0434 GMT Market Current Previous Close Pct Move Singapore 2849.02 2854.69 -0.20 Bangkok 1487.42 1473.78 0.93 Manila 7633.33 7671.72 -0.50 Jakarta 5292.286 5302.493 -0.19 Kuala Lumpur 1656.06 1655.78 0.02 Ho Chi Minh 665.75 663.37 0.36 Change this year Market Current End 2015 Pct Move Singapore 2849.02 2882.73 -1.17 Bangkok 1487.42 1288.02 15.48 Manila 7633.33 6952.08 9.80 Jakarta 5292.286 4593.008 15.22 Kuala Lumpur 1656.06 1692.51 -2.15 Ho Chi Minh 665.75 579.03 14.98 ($1 = 102.4100 yen) (Reporting by Aparajita Saxena in Bengaluru; Editing by Subhranshu Sahu)
© Thomson Reuters 2016 All rights reserved.