SE Asia Stocks-Higher tracking Asian shares after BOJ overhauls monetary policy
By Aparajita Saxena Sept 21 (Reuters) - Most Southeast Asian stock markets recovered from losses earlier in the day to end higher, echoing a surge in wider Asian stocks after the Bank of Japan said it would overhaul monetary policy and steepen the yield curve. At a two-day rate review that ended on Wednesday, the BOJ abandoned its base money target and adopted "yield curve control" under which it will buy long-term government bonds to keep 10-year bond yields at current levels of around zero percent. Earlier, Japanese stocks rallied, with the Nikkei and the Topix indexes rising 1.9 percent and 2.7 percent, respectively, after the BOJ said 2.7 trillion yen ($26.60 billion) of its exchange traded fund purchases would be linked to the bank-heavy Topix index. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 percent. We expect most Asian shares to keep climbing in the short-term, and the yen to continue falling after today's announcement, said Victor Felix, an analyst with AB Capital Securities Inc. The yen recovered from lows on Wednesday, with investors sceptical about whether the Bank of Japan's latest measures will be enough to generate inflation. Thai shares led the region, their sixth gain in seven sessions, with financials rising the most. Siam Commercial Bank was up 1 percent. Energy companies also rose after global oil prices jumped more than 1 percent, helped by a reported draw in U.S. crude inventories and a strike by oil services workers in Norway that threatened to impact output. PTT PCL, Thailand's largest energy firm, climbed 2.2 percent. Indonesia closed 0.8 percent higher, buoyed by consumer discretionary and financial stocks. Indonesia's central bank will likely cut its benchmark interest rate for the fifth time this year on Thursday to try to spur economic growth, a Reuters poll showed. Malaysia was up slightly, with data on Wednesday showing inflation rose faster than expected in August and above the previous month's pace. Vietnam rose 0.8 percent on gains in financial stocks. Singapore was down marginally, while Philippine shares ended flat. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on day Market Current Previous Pct Move Close Singapore 2850.74 2854.69 -0.14 Bangkok 1487.17 1473.78 0.91 Manila 7675.42 7671.72 0.05 Jakarta 5342.592 5302.493 0.76 Kuala Lumpur 1658.73 1655.78 0.18 Ho Chi Minh 668.48 663.37 0.77 Change this year Market Current End 2015 Pct Move Singapore 2850.74 2882.73 -1.11 Bangkok 1487.17 1288.02 15.46 Manila 7675.42 6952.08 10.40 Jakarta 5342.592 4593.008 16.32 Kuala Lumpur 1658.73 1692.51 -2.00 Ho Chi Minh 668.48 579.03 15.45 ($1 = 101.5200 yen) (Reporting by Aparajita Saxena in Bengaluru; Editing by Biju Dwarakanath)
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