Southeast Asian stock markets rose on Friday after US treasury yields receded from recent highs, while the Korean leaders' pledge to pursue a peace deal eased geopolitical tensions, boosting investor confidence.
The two Koreas announced they would work with the United States and China this year to declare an official end to the 1950s Korean war and seek an agreement to establish "permanent" and "solid" peace in its place.
"The markets are continuing to buy into this drop in the geopolitical risk in the region, which in my view from an equity perspective, is massively amazing," said Stephen Innes, head of trading for Asia Pacific, Oanda.
The Stock Exchange of Thailand index closed 4.82 points or 0.27% higher to close at 1,788.02, in trade worth 50.95 billion baht. The index lost 1.3 % for the week.
The Indonesia index snapped five straight sessions of declines to close 0.2% higher but posted its biggest weekly loss in nearly five years.
The Indonesian central bank governor said on Thursday he would be prepared to adjust the benchmark interest rate if weakness in the rupiah currency threatened Indonesia's inflation target or the stability of the financial system.
The country's index of 45 most liquid stocks was up 0.25%, but ended the week with an 8.6 % loss.
Malaysian shares closed 0.6% higher but the index fell 1.3% in the week.
Financials and telecom stocks pushed the index upwards with Axiata Group gaining the most in over a month while Malayan Banking hit an all-time high during the day.
Singapore stocks were subdued but ended the session on a positive note.
Philippine stocks ended 1.4% higher led by gains in industrial and financial stocks. The index was little changed over the week.
Index heavyweights SM Investments Corp rose 2.7% while Ayala Corp gained 3.2%.
Vietnam shares closed 0.5% higher. The index, with a market capitalisation of US$140 billion, fell over 6% this week.
Analysts attributed this to profit-taking and that the correction will be short-lived.
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Southeast Asian stock markets |
|
||
|
|
Current |
Previous |
% change |
|
Thailand |
1,778.02 |
1,773.20 |
+0.27 |
|
Indonesia |
5,919.23 |
5,909.19 |
+0.17 |
|
Malaysia |
1,863.47 |
1,852.27 |
+0.60 |
|
Philippines |
7,721.02 |
7,617.42 |
+1.36 |
|
Singapore |
3,577.21 |
3,570.02 |
+0.20 |
|
Vietnam |
1,050.26 |
1044.86 |
+0.52 |
