September 21, 2016 / 5:11 AM / 2 years ago

SE Asia Stocks-Recover after BOJ modifies policy framework

By Aparajita Saxena
    Sept 21 (Reuters) - Southeast Asian stock markets recouped
early losses on Wednesday, tracking gains in Japanese stocks
after the Bank of Japan announced a major overhaul of its
monetary policy, shifting to a yield curve target.
    The BOJ, at its policy meeting on Wednesday, decided to
adopt a target for long-term interest rates. 
    It maintained its interest rates at 0.1 percent negative,
and said it would continue to buy long-term government bonds at
a pace so that the balance of its holdings increases by 80
trillion yen ($781 billion) per year.
    The Nikkei and the Topix rallied after the
BOJ said 2.7 trillion yen of its ETF purchases will be linked to
the index. 
    Immediately after the BOJ decision, MSCI's broadest index of
Asia-Pacific shares outside Japan gained 0.3
    Singapore shares were down 0.2 percent after
declining as much as 0.6 percent earlier in the day.
    Losses were led by United Overseas Bank Ltd and
Oversea-Chinese Banking Corp Ltd, and the index was on
track to snap three sessions of gains.
    Philippine stocks were lower after two session of
gains with SM Investments Corp shedding 1.3 percent.
    Trading was lacklustre with only 0.2 times of the 30-day
average volume happening in the morning session.
    The Philippine central bank is expected to stand pat on
monetary policy on Thursday, but may raise interest rates next
year with inflation forecast to pick up as the impact of low oil
prices wanes. 
    Indonesian shares fell as much as 0.5 percent, their
biggest percentage loss in a week, with Bank Harda Internasional
Tbk PT waning 10 percent.
    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
after 0700 GMT on Thursday.
    Bucking the trend, Thai shares bounced back from the
previous session's losses, propped up by financials.
    Real-estate company U City PCL led the gains.
    Malaysia remained flat after its consumer price
index in August increased 1.5 percent from a year
earlier, faster than the previous month's pace, government data
showed on Wednesday. 
    For Asian Companies click; 
  STOCK MARKETS                                              
  Change at 0434 GMT                                         
  Market              Current       Previous Close  Pct Move
  Singapore           2849.02       2854.69         -0.20
  Bangkok             1487.42       1473.78         0.93
  Manila              7633.33       7671.72         -0.50
  Jakarta             5292.286      5302.493        -0.19
  Kuala Lumpur        1656.06       1655.78         0.02
  Ho Chi Minh         665.75        663.37          0.36
  Change this year                                  
  Market              Current       End 2015        Pct Move
  Singapore           2849.02       2882.73         -1.17
  Bangkok             1487.42       1288.02         15.48
  Manila              7633.33       6952.08         9.80
  Jakarta             5292.286      4593.008        15.22
  Kuala Lumpur        1656.06       1692.51         -2.15
  Ho Chi Minh         665.75        579.03          14.98
    ($1 = 102.4100 yen)

 (Reporting by Aparajita Saxena in Bengaluru; Editing by
Subhranshu Sahu)
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