SE Asia Stocks-Rally as Brexit impact fades; Jakarta near 1-yr high
By Shashwat Pradhan June 29 (Reuters) - Southeast Asian stock markets rallied on Wednesday, in line with Asian peers, as the immediate impact of Britain's vote to leave the European Union began to fade and investors bet central banks would have to ride to the rescue with more 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 Securities in Jakarta. Any bounce was welcome, given global equity markets shed $3 trillion in value in the two sessions following Britain's shock vote, according to S&P Dow Jones Indices. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent to recoup around one-third of Friday's loss. Indonesian shares jumped 2 percent to their highest since July 3, 2015, extending gains into a third session, aided by 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 to help boost the country's economic growth rate to around 5.2-5.3 percent this year, from 4.8 percent last year. Philippine stocks bounced back from Tuesday's loss and closed 1.7 percent higher, after the Finance Department said the government budget surplus widened to 55 billion pesos ($1.17 billion) in April Singapore shares ended up 1.3 percent, with financial stocks such as DBS Group Holdings Ltd leading the rally. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current previous Pct Move close Singapore 2792.73 2756.53 1.31 Bangkok 1442.66 1437.42 0.36 Manila 7798.53 7666.69 1.72 Jakarta 4980.105 4882.171 2.01 Kuala Lumpur 1642.21 1634.04 0.50 Ho Chi Minh 630.12 622.2 1.27 Change so far this year Market Current End prev yr Pct Move Singapore 2792.73 2882.73 -3.12 Bangkok 1442.66 1288.02 12.01 Manila 7798.53 6952.08 12.18 Jakarta 4980.105 4593.008 8.43 Kuala Lumpur 1642.21 1692.51 -2.97 Ho Chi Minh 630.12 579.03 8.82 (Reporting by Shashwat Pradhan; Editing by Subhranshu Sahu)
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