Asia Stocks-Rise on recovery hopes, Malaysia hits 11-mth high

Sources: Reuters (Kazunori Takada) Wed Jul 15, 2009 6:17am EDT

* Positive outlook, upbeat U.S. earnings boost markets * Malaysia at 11-month highs, S'pore a near 5-wk high * Cenbank comment pushes Thai market to 2-week high By Arada Therdthammakun BANGKOK, July 15 (Reuters) - Southeast Asian stock markets
edged higher on Wednesday as solid earnings from U.S. firms and
an improving Asian economic outlook boosted confidence in a
global recovery, sending Singapore and Malaysian shares to
fresh highs. Singapore's benchmark index .FTSTI rose 3.4 percent, with
a blue chip shares rally taking it to a near five-week high and
on buying in the last minutes of trading after a Reuters poll
showed the country will see a sharp turnaround next year as the
continent rebounds. [nSP519874] Malaysian stocks .KLSE edged 1.63 percent higher, having
hit their highest level unseen since Aug. 15, 2008 earlier in
the day, Philippine stocks .PSI closed up 0.95 percent at its
highest since June 15, with Philippine Long Distance Telephone
(TEL.PS) leading the way with a 0.42 percent rise. Thai shares .SETI closed up 1.75 percent at a two-week
high, extending a 0.53 percent rise in morning trade, after the
Bank of Thailand said it could still cut rates again if economy
slows. [nBKT001040] "As the BOT has decided to hold rates unchanged for the
second consecutive MPC meeting, this development should support
our views that Thai policy rates have reached the bottom
although the MPC's latest statement remains accommodative."
Usara Wilaipich, economist at Standard Chartered Bank said. The central bank said it was ready to cut rates if economic
growth slows and saw no immediate rate rise prospect. "The committee would continue to closely monitor
developments in domestic and external economic conditions and
would stand ready to implement appropriate monetary policy to
ensure an orderly economic recovery," it said in a statement. Elsewhere in the region, late buyings helped push
Indonesian shares .JKSE up 3.24 percent to their highest
since September 2008, while Vietnam stock index .VNI
rebounded 2.03 percent after falling to a six-week low a day
earlier. However analysts saw the sharp rise to be temporary, with
investors now looking for sings of a pick up in U.S. demand,
which is key to a solid global recovery, and quarterly results
from companies in the region. "The market gain might not last long, we are still cautious
on second-quarter earnings from firms whether they will have
any surprise to the markets," said Pichai Lertsupongkij, head
of sales at Thanachart Securities in Bangkok. The MSCI index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 2.8 percent by 0922, while U.S. stock
futures DJc1 edged up 0.79 percent. Financial stocks .FTFSTAS8000 were among the top
percentage gainers in Singapore's blue chip index for the
second day in a row, rising 4.24 percent to a four-week high,
after Goldman Sachs' quarterly earnings trounced forecasts and
raised investor confidence in financials. DBS, Southeast Asia's largest lender, edged up 3.6 percent.
Oversea-Chinese Banking Corp (OCBC.SI) climbed 2.5 percent and
United Overseas Bank (UOBH.SI) surged nearly 6.0 percent. In Bangkok, index heavyweight energy firm PTT Exploration
and Production PTTE.BK rose 0.8 percent, top conglomerate
Siam Cement SCC.BK gained 3.5 percent, while shipper Thoresen
Thai TTA.BK increased 5.24 percent. Gains in heavyweight pushed up shares in Kuala Lumpur, with
energy services firm KNM Group (KNMP.KL) jumping 11 percent,
the nation's top lender Maybank (MBBM.KL) climbing 4.4 percent
and top listed company Sime Darby (SIME.KL) up 2.08 percent.
($1=34.10 Baht)