September 19, 2016 / 10:07 AM / 2 years ago

SE Asia Stocks-Rise as chances dim for Fed rate hike in Sept

By Aparajita Saxena
    Sept 19 (Reuters) - Most Southeast Asian stock markets
climbed on Monday after chances of an interest rate hike by the
U.S. Federal Reserve this week diminished, and as investors
awaited data from the Bank of Japan (BOJ) meeting on Tuesday and
    Federal Reserve Governor Lael Brainard said the central bank
should avoid removing support for the U.S. economy too quickly,
although several Fed officials have recently suggested that the
economy is nearly ready for higher rates. 
    Chances of an interest rate hike by the Fed in December have
shot up in the past month, a Reuters poll showed. 
    "Given low market expectations for the Fed to move in
September (probability at 20 percent), we expect a continuation
of the status quo," Taye Shim, an analyst with Daewoo Securities
in Jakarta, wrote in a note.
    "We expect soft market movements ahead of the FOMC (Federal
Open Market Committee) meeting and the BOJ monetary policy
meeting," he added.
    Japan's central bank is expected to present an assessment of
its ultra-easy monetary policy when it meets on Tuesday and
    The BOJ will consider making negative interest rates the
centrepiece of future easing by shifting its prime policy target
away from base money, Reuters reported last week citing sources.
    Indonesian shares outperformed other markets in the
region and were up for a third straight session.
    Gains were supported by telecom services stocks including
Telekomunikasi Indonesia (Persero) Tbk PT.
    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
Thursday, Sept. 22 after 0700 GMT. 
    Singapore shares remained robust, helped by gains in
oil stocks as global crude prices rose after Venezuela said OPEC
and non-OPEC producers were close to reaching an output
stabilising deal and as clashes in Libya raised concerns that
efforts to restart crude exports could be disrupted.
    Rig builders Keppel Corp and Sembcorp Industries
 were among the gainers on the index.
    Malaysia closed lower for a fifth straight session.
    Malaysia's annual inflation rate in August
likely increased to 1.3 percent, a Reuters poll showed, slightly
faster than the previous month's pace. 
    Its CPI data is due Wednesday at 0400 GMT.
    Vietnam shares ended 1 percent higher, after five
consecutive sessions of falls, posting its biggest intraday gain
in three weeks.
    Advances in Vietnam were supported by financial stocks.
Vietcom Bank rose 4.7 percent.
    Philippine shares reversed morning session losses to
close 0.3 percent higher.
    Thai shares ended higher for a fifth consecutive
    Thailand expects to unveil next week fresh measures to help
beleaguered farmers, the finance minister said on Monday.
    For Asian Companies click; 
  STOCK MARKETS                                            
  Change on day                                            
  Market            Current       Previous Close  Pct Move
  Singapore         2852.14       2827.45         0.87
  Bangkok           1492.73       1479.07         0.92
  Manila            7575.84       7553.76         0.29
  Jakarta           5321.841      5267.769        1.03
  Kuala Lumpur      1651.71       1652.99         -0.08
  Ho Chi Minh       657.89        651.31          1.01
  Change this year                                
  Market            Current       End 2015        Pct Move
  Singapore         2852.14       2882.73         -1.06
  Bangkok           1492.73       1288.02         15.89
  Manila            7575.84       6952.08         8.97
  Jakarta           5321.841      4593.008        15.87
  Kuala Lumpur      1651.71       1692.51         -2.41
  Ho Chi Minh       657.89        579.03          13.62

 (Reporting by Aparajita Saxena in Bengaluru; Editing by Amrutha
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