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Most muted; Malaysia, Indonesia gain

Most muted; Malaysia, Indonesia gain

-A +A (May 25): Malaysian shares climbed on Friday, after five sessions of losses and Bank Indonesia governor's promise to focus on stabilising the rupiah helped local shares extend gains,…

Most muted; Malaysia, Indonesia gain

-A +A

(May 25): Malaysian shares climbed on Friday, after five sessions of losses and Bank Indonesia governor's promise to focus on stabilising the rupiah helped local shares extend gains, while trading was muted in the other Southeast Asian stock markets.

Indonesia's newly sworn-in central bank governor, Perry Warjiyo, on Thursday said he aimed to use interest rate policy to stabilise the rupiah in the near term and to be "more pre-emptive" and ahead of the curve on monetary settings.

"This comment was very much needed at this point of time, because market concerns were overly amplified, so that comment of how he's going to stabilize the market calmed market fears and has brought back risk appetite," said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.

Indonesian a ssets have been among the worst hit in Asia this year, as higher U.S. yields fuel foreign outflows, amid discouraging domestic economic data. The rupiah has been among the poorest performing currencies in Asia.

The local benchmark equity index, which has shed about 6% year-to-date, was set to extend gains into a fourth straight session, rising about 0.6%.

Meanwhile, Malaysian stocks, which have been reeling under concerns of worrying amounts of debts left behind by the previous government, rose 1.2% and were set to end five consecutive sessions of losses.

Overseas investors sold US$204 million of Malaysian equities in the first four days of the week.

Financial and telecom stocks climbed as Malaysia's new government vowed to find out where state-fund 1Malaysia Development Bhd's (1MDB) money went and punish those responsible, assuaging investor worries.

Mahatir had said on Wednesday that the government would try to cut national debt, which he put at 65% of GDP, by reviewing projects and a 10% reduction in cabinet ministers' salaries.

Singapore shares were flat ahead of industrial data expected later in the day, which is expected to show that manufacturing output in April rose 8.3% from last year, and 1.2% from the prior month, as per a Reuters poll.

SOUTHEAST ASIAN STOCK MARKETS AS AT 0423 GMT

Change on day

Market Current Previous Close Pct Move
Singapore 3528.03 3528.92 -0.03
Bangkok 1731.53 1732.51 -0.06
Manila 7624.46 7652.53 -0.37
Jakarta 5980.699 5946.538 0.57
Kuala Lumpur 1795.07 1775.66 1.09
Ho Chi Minh 983 985.92 -0.30

Change on year

Market Current End 2017 Pct Move
Singapore 3528.03 3402.92 3.68
Bangkok 1731.53 1753.71 -1.26
Manila 7624.46 8558.42 -10.9
Jakarta 5980.699 6355.654 -5.90
Kuala Lumpur 1795.07 1796.81 -0.10
Ho Chi Minh 983 664.87 47.85
Source: Google News | Berita 24 English

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