SE Asia Stocks-Recover as investors absorb Brexit shock
By Krishna V Kurup June 27 (Reuters) - Most Southeast Asian stock markets recovered from early losses on Monday and closed higher, as investors digested uncertainties arising from Britain's decision to exit the European Union. Sentiment remained weak as doubts over when the world's fifth-largest economy would leave the EU and on what terms weighed on global markets. However, the moves on Monday were nowhere near as extreme as on Friday, when the shock of Britain's exit vote drove global stocks to their biggest decline in nearly five years. The UK is likely to enter a recession within the year as a result of the leave vote, a decision that will stunt global economic growth as well, Goldman Sachs' top economists said on Sunday. Concerns over Brexit however could prevent the U.S. Federal Reserve from raising rates in the coming months, which would be a big comfort for Asian markets. Philippines shares rose 1.1 percent, helped by energy and financial stocks. Semirara Mining Corp rose 5.1 percent, while Ayala Land Inc gained 3.1 percent. The rise was not expected today, but "the impact of the Brexit should really be minimal," said Charles Ang, an analyst with COL Financial. "Aside from the effect of weakened sentiments of global investors, fundamentally we do not see any material impact of the Brexit in terms of the Philippine economy," he added. Vietnam ended marginally higher, reversing losses made in early trade. Energy stocks led the gains, with Petrovietnam Gas Joint Stock Corp up 0.8 percent and PetroVietnam Drilling & Well Service Corp 2.3 percent higher. "Investors are overreacting to Brexit," said Duong Manh Dung, a trader at VnDirect Securities. "The market needs two to three sessions to rebalance." Malaysian shares pared early losses to close 0.3 percent lower, while Singapore closed down 0.2 percent. MSCI's broadest index of Asia-Pacific shares outside Japan cut losses and was down 0.2 percent at 0825 GMT. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on day Market Current Prev close Pct Move Singapore 2729.85 2735.39 -0.20 Bangkok 1424.31 1413.19 0.79 Manila 7715.9 7629.72 1.13 Jakarta 4836.052 4834.569 0.03 Kuala Lumpur 1629.52 1634.05 -0.28 Ho Chi Minh 621.27 620.77 0.08 Change on year Market Current End 2015 Pct Move Singapore 2729.85 2882.73 -5.30 Bangkok 1424.31 1288.02 10.58 Manila 7715.9 6952.08 10.99 Jakarta 4836.052 4593.008 5.29 Kuala Lumpur 1629.52 1692.51 -3.72 Ho Chi Minh 621.27 579.03 7.29 (Reporting by Krishna V Kurup in Bengaluru; Additional reporting by My Pham in Hanoi; Editing by Subhranshu Sahu)
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