SE Asia Stocks-Bounce as Brexit impact wanes; Indonesia leads
By Shashwat Pradhan June 29 (Reuters) - Southeast Asian stock markets rallied on Wednesday as the immediate impact of Britain's vote to leave the European Union began to wane and investors wagered central banks would have to ride to the rescue with additional stimulus measures. Aiding sentiment was data showing the U.S. economy grew at a 1.1 percent annualised rate in the first quarter, rather than the 0.8 percent pace reported last month. The impact of Brexit on the markets will be temporary, with the broader southeast Asian markets taking cues from global markets following the solid U.S. economic data, said analyst Arief Budiman of Ciptadana in Jakarta. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent to recoup around a third of Friday's loss. Any bounce was welcome, given global equity markets shed $3 trillion in value in the two days following Britain's shock vote, according to S&P Dow Jones Indices. Indonesian shares extended gains for a third straight session, climbing 1.5 percent to a nearly one-year high. The rally was aided by passage of the tax amnesty bill that is expected to create inflow of repatriated funds. "We are not waiting for Godot ... (The impact of the bill could include) lower bond yield, which means potential higher market valuation and lower funding cost," said analyst Isnaputra Iskandar of Maybank Kim Eng Securities in a note. Indonesia's central bank governor expects the bill will help boost the country's economic growth rate to around 5.2-5.3 percent this year, from 4.8 percent last year. Singapore index extended gains and rose more than 1 percent with financial stocks such as DBS Group Holdings Ltd leading the rally. Philippine stocks recovered from Tuesday's fall and were up nearly 1 percent after the Department of Finance said the government had a budget surplus of 55 billion pesos ($1.17 billion) in April, exceeding the surplus posted in the same month last year by about 5 percent. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change 0448 GMT Market Current previous close Pct Move Singapore 2786.19 2756.53 1.08 Bangkok 1446.95 1437.42 0.66 Manila 7729.62 7666.69 0.82 Jakarta 4950.402 4882.171 1.40 Kuala Lumpur 1640.85 1634.04 0.42 Ho Chi Minh 628.9 622.2 1.08 Change so far this year Market Current End prev yr Pct Move Singapore 2786.19 2882.73 -3.35 Bangkok 1446.95 1288.02 12.34 Manila 7729.62 6952.08 11.18 Jakarta 4950.402 4593.008 7.78 Kuala Lumpur 1640.85 1692.51 -3.05 Ho Chi Minh 628.9 579.03 8.61 ($1 = 46.9750 Philippine pesos) (Reporting by Shashwat Pradhan; Editing by Gopakumar Warrier)
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