MOST Southeast Asian stock markets edged up on Thursday, tracking a surge on Wall Street as robust US economic data, more policy stimulus and Joe Biden’s strong showing in the Democratic primary contests boosted sentiment.
Services sector activity in the United States jumped to a one-year high in February, data showed, and the House of Representatives passed a US$8.3 bil (RM34.86 bil) emergency spending to combat the coronavirus outbreak.
“The prospect of the Fed starting a global easing cycle … and ramped up US fiscal firepower to fight COVID-19 were catalysts for equity markets to front-run economic relief,” Vishnu Varathan, a senior economist at Mizuho Bank, said in a note.
The US Federal Reserve eased interest rates earlier this week, joining a global effort to shield growth from the virus epidemic, which has upended supply chains, travel and production across the globe.
Wall Street surged overnight, after a strong performance by former Vice President Biden in the Democratic nomination campaign, as he is considered less likely to raise taxes and impose new regulations than rival Bernie Sanders.
Leading gains in Southeast Asia, Thai stocks rose as much as 1.8% to hit their highest level in a week.
Data showed that the country’s headline consumer price index in February rose 0.74% from a year earlier, but stayed below the central bank’s 1%-3% target range, allowing room for rate cuts at its meeting scheduled later in the month.
The trade-sensitive Singapore index gained as much as 0.8%, buoyed by financials and industrials.
Index heavyweights Capitaland Ltd and Mapletree Commercial Trust jumped nearly 2% and 4%, respectively.
The Philippine benchmark extended gains to a third session, lifted by consumer stocks.
The country’s inflation rate slowed for the first time in four months in February and was lower than the forecast, increasing the prospects of a rate cut at the central bank’s March 19 policy meeting.
Universal Robina Corp and Robinsons Retail Holdings Inc gained as much as 3.1% and 5%, respectively.
The Vietnam index strengthened on gains in energy stocks after oil prices rose. Petrovietnam Gas Joint Stock Corp and Vietnam National Petroleum Group were 1.7% and 0.8% higher, respectively. – March 5, 2020, Reuters
