South-east Asia stocks rise, Indonesia up more than 1pc

SINGAPORE, Oct 3 — Most Southeast Asian stock markets were up today, mirroring gains in Asian peers that climbed as concerns over stability of German lender Deutsche Bank eased, with Indonesia recovering from previous session's losses to rise more than one per cent.

Sentiment also got a boost after oil prices stabilised on hopes the Opec cut on output would help re-balance markets.

In Asia, a report that Deutsche Bank was negotiating a much smaller fine with the US Department of Justice pushed shares higher. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent.

Indonesia outperformed regional markets, supported by gains in shares of basic materials and consumer cyclical companies.

“We are seeing some positive sentiment because Jokowi (Indonesian President Joko Widodo) has asked for a higher budget in terms of capex in 2017,” said Harry Su, an analyst with Jakarta-based Bahana Securities.

“If this comes through then obviously spending would increase, which in turn could be positive for GDP growth.”

The Jakarta Post reported on Saturday that the Indonesian government planned to improve the quality of government spending after recent budget cuts.

“The easing of Deutsche Bank concerns also lent some support for JCI's (Jakarta Composite Index) performance this morning,” Su added.

Philippine shares bounced back, driven by gains in industrials and consumer non-cyclical stocks.

Singapore shares were flat, while Thai stocks rose, boosted by gains in energy shares.

PTT PCL was up 2.06 per cent, while Thai Oil PCL notched up gains of more than one per cent.

The Malaysian stock market was closed for a holiday. — Reuters

Contributer : Malay Mail Online | All http://ift.tt/2cMzMLM

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