September 21, 2016 / 10:17 AM / 2 years ago

SE Asia Stocks-Higher tracking Asian shares after BOJ overhauls monetary policy

By Aparajita Saxena
    Sept 21 (Reuters) - Most Southeast Asian stock markets
recovered from losses earlier in the day to end higher, echoing
a surge in wider Asian stocks after the Bank of Japan said it
would overhaul monetary policy and steepen the yield curve.
    At a two-day rate review that ended on Wednesday, the BOJ
abandoned its base money target and adopted "yield curve
control" under which it will buy long-term government bonds to
keep 10-year bond yields at current levels of around zero
    Earlier, Japanese stocks rallied, with the Nikkei 
and the Topix indexes rising 1.9 percent and 2.7
percent, respectively, after the BOJ said 2.7 trillion yen
($26.60 billion) of its exchange traded fund purchases would be
linked to the bank-heavy Topix index.
    MSCI's broadest index of Asia-Pacific shares outside Japan
 was up 0.7 percent.
    We expect most Asian shares to keep climbing in the
short-term, and the yen to continue falling after today's
announcement, said Victor Felix, an analyst with AB Capital
Securities Inc.
    The yen recovered from lows on Wednesday, with investors
sceptical about whether the Bank of Japan's latest measures will
be enough to generate inflation. 
    Thai shares led the region, their sixth gain in
seven sessions, with financials rising the most.
    Siam Commercial Bank was up 1 percent.
    Energy companies also rose after global oil prices jumped
more than 1 percent, helped by a reported draw in U.S. crude
inventories and a strike by oil services workers in Norway that
threatened to impact output. 
    PTT PCL, Thailand's largest energy firm, climbed
2.2 percent.
    Indonesia closed 0.8 percent higher, buoyed by
consumer discretionary and financial stocks.
    Indonesia's central bank will likely cut its benchmark
interest rate for the fifth time this year on Thursday to try to
spur economic growth, a Reuters poll showed. 
    Malaysia was up slightly, with data on Wednesday
showing inflation rose faster than expected in August and above
the previous month's pace. 
    Vietnam rose 0.8 percent on gains in financial
    Singapore was down marginally, while Philippine
shares ended flat.
    For Asian Companies click; 
  STOCK MARKETS                                          
  Change on day                                          
  Market             Current       Previous     Pct Move
  Singapore          2850.74       2854.69      -0.14
  Bangkok            1487.17       1473.78      0.91
  Manila             7675.42       7671.72      0.05
  Jakarta            5342.592      5302.493     0.76
  Kuala Lumpur       1658.73       1655.78      0.18
  Ho Chi Minh        668.48        663.37       0.77
  Change this year                              
  Market             Current       End 2015     Pct Move
  Singapore          2850.74       2882.73      -1.11
  Bangkok            1487.17       1288.02      15.46
  Manila             7675.42       6952.08      10.40
  Jakarta            5342.592      4593.008     16.32
  Kuala Lumpur       1658.73       1692.51      -2.00
  Ho Chi Minh        668.48        579.03       15.45
($1 = 101.5200 yen)

 (Reporting by Aparajita Saxena in Bengaluru; Editing by Biju
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