SE Asia Stocks Rebound on China cbank liquidity assurance; Manila leads

by **Cals** Thu 27 Jun 2013, 02:40

Rebound on China cbank liquidity assurance; Manila leads

Business & Markets 2013

Written by Reuters

Wednesday, 26 June 2013 19:06

BANGKOK (June 26): Most Southeast Asian stocks rebounded on Wednesday from their multi-month lows, led by the Philippines, as the Chinese central bank's assurance of more funds to banks facing a credit squeeze and optimistic U.S. economic data boosted market sentiment.

The Philippines' main index, which has plummeted 17.6 percent in June alone, jumped 5.7 percent to recover from more than a six-month low hit in the previous session. The index recorded its highest percentage gain since Nov. 25, 2008.

The People's Bank of China said late on Tuesday that it had provided cash to some institutions facing temporary shortages and would continue to do so if needed, seeking to tame investor jitters amid spiking money market rates that raised fears of a banking crisis.

The region's markets have been on a falling trend with foreign investors exiting, ever since the U.S. Federal Reserve hinted at plans to scale back its bond repurchases.

"There has been a misinterpretation on what (Fed chief) Ben Bernanke has said on scaling back its stimulus. That, along with strong economic fundamentals of the Philippines economy, helped for a healthy recovery," a Manila-based senior analyst said on condition of anonymity.

Manila saw net foreign outflows of $43 million in shares despite the strong gains.

The Thai SET index gained for a second session, rising 2.9 percent to a one-week closing high, led by financials, while Indonesia's broader index jumped 3.8 percent
despite $15.7 million in foreign outflows on Wednesday.

Singapore's Straits Times Index edged up 0.5 percent, led by property stocks after some brokers issued positive reports on companies in the sector.

Vietnam edged up 0.1 percent, snapping a four-session losing streak despite $6.3 million in foreign outflows and an unstable investor sentiment, while Malaysia gained 0.7 percent.