SE Asia Stocks-Up after better U.S. data, led by Jakarta

SINGAPORE (Dec 16): Southeast Asian stock markets gained on Friday
after better data on the U.S. economy helped offset worries about the
euro zone, at least for now, and Indonesia led the way after a credit
rating upgrade and approval of an important land bill.

A fall in unemployment benefit claims and stronger-than-expected
regional factory activity in the United States suggested an improvement
in the world's largest economy, helping Southeast Asian markets snap a
three-day losing streak.

Indonesia gained 1.8 percent from its lowest close since Nov. 29 in
heavy volume, backed by net foreign buying of $34 million, after Fitch
gave it an investment-grade rating. The passage of a land
acquisition bill by parliament also boosted the market in Jakarta. It is
expected to help speed up big government infrastructure projects.

Singapore gained 0.9 percent, the Philippines 0.5 percent, Thailand 1
percent and Malaysia 0.1 percent. Vietnam gained 0.4 percent,
recovering from a 2-1/2-year low.

Fitch Ratings upgraded Indonesia's credit status on Thursday by one
notch to BBB minus, the first rating agency to give the emerging market
an investment grade since 1997, reflecting the country's resilient
economic growth and fundamentals.

"The rally today is mainly due to investment grade euphoria with a
bigger chance of rating upgrades from Moody's and S&P in the
future," said Alfian Syah, head of research at Valbury Asia Securities.

Banks led the gains in Jakarta, with Indonesia's biggest micro
lender, Bank Rakyat Indonesia, rising 4.6 percent, PT Bank Mandiri
jumping 3.9 percent and the biggest bank by market value, Bank Central
Asia, gaining 2.6 percent.

After Manila closed, rating agency Standard & Poor's revised its rating outlook for the Philippines to positive from stable.

The latest export data from Singapore also helped sentiment, with
big-cap stocks such as Singapore Telecommunications and rig builder
Sembcorp Marine gaining 2.6 and 1.6 percent respectively.

In Bangkok, Thailand's second-largest mobile operator, Total Access
Communication Pcl, surged 9.8 percent after a plan to pay a special
dividend and a financial restructuring.

"We are still seeing some modest foreign outflows and we expect the
market to move in a narrow range next week because of caution about the
euro zone debt crisis," said Teerawut Kanniphakul, a senior analyst at
broker CIMB Securities.

Thailand saw net foreign outflows of $139.1 million in the week, as of Thursday.

Malaysia saw foreign outflows of $19.4 million on Friday.

The MSCI's broadest index of Asia Pacific shares outside Japan was up 1.3 percent by 0950 GMT. - Reuters