Philippine shares fell 2% on Wednesday following disappointing September trade deficit data, while other Southeast Asian markets, including the Stock Exchange of Thailand index, closed marginally higher as investors became more optimistic about trade negotiations between Beijing and Washington after the US midterm elections results.
As expected, the elections resulted in a split Congress, with the Democrats winning control of the House of Representatives, which gives them the power to intercept President Donald Trump's business-friendly agenda and other policies, including US-China trade relations.
"We have a virtuous environment for a year-end rally over the next couple of weeks, notwithstanding the election results," said Liu Jinshu, director of research at NRA Capital.
However, the prospect of a political gridlock arises with the split Congress, creating some uncertainty for investors.
Investors also awaited a two-day meeting of the Federal Reserve starting later in the day to gauge the outlook for US monetary policy.
The SET index snapped two straight sessions of falls to close 6 points or 0.36% higher to 1,675.33. Thai shares were buoyed by utilities, with Banpu Power Plc gaining 2.5% and Glow Energy rising almost 1%.
Philippine shares extended falls into a second session, dragged mainly by SM Investments Corp and PLDT Inc.
SM Investments fell 4.4% to a near two-week closing low, while PLDT declined 5.6% to its lowest close since late September.
Data released earlier in the day showed imports hit an all-time high in September while exports remained weak, bringing the trade deficit to the highest in nine months amid sustained purchases of capital goods needed for the government's infrastructure overhaul.
Singapore shares gave up earlier gains to close marginally higher. Keppel Corp rose nearly 2%, while Sembcorp Industries declined 0.7%.
Malaysian shares climbed for a second session in three, helped primarily by telecommunication and industrial stocks.
Malaysia Airports Holdings was the top percentage gainer on the benchmark stock index with an about 8% jump, while mobile communication service provider Digi.com rose 3.7% to a near three-week closing high.
Meanwhile, the country's gross international reserves edged down to $101.7 billion as of Oct 31 from $102.8 billion as of Oct 15, the central bank said.
Indonesian shares closed higher for a seventh session in a row on the back of gains in industrials. Construction firm Totalindo Eka Persada climbed 1%, while Waskita Karya surged nearly 10%.
