ASEAN KEY DESTINATIONS
ASEAN Leads World Markets Higher
Three stocks fell for every one that rose in the MSCI Asia benchmark, led by declines in industrials and commodities producers. Energy companies slumped after U.S. Attorney General Eric Holder said the Justice Department is investigating whether any criminal laws were violated in the BP oil spill.
But in overnight trading on Wall St U.S. stocks rose and Treasuries fell as better-than-estimated growth in home sales and stabilizing loan demand at Bank of America Corp. bolstered optimism in the economy.
Forget the Doom and double dip gloom news, reality is the world’s economy is improving. Home Sales, Factory Orders and Auto Sales are all pointing to an improving environment, the game now is to buy well, on the dips and stick to quality stocks.
The May auto sales results provide one of the earliest snapshots of consumer demand for a month marked by financial market volatility and renewed questions about the strength of the U.S. economic recovery in the second half of the year. It also reflects growth in other markets.
The Thailand Stock Exchange gained over 1 percent on Wednesday despite the falling markets after the Bank of Thailand decided to keep interest rates unchanged, which had been widely expected after recent political unrest but still spurred late buying.
The Thai central bank left its main rate at a record low of 1.25 percent, in part due to concerns over the European debt crisis, which could derail global growth. The SET index ended up 1.18 percent but volume was relatively thin at 13.9 billion baht ($427 million) perhapsan early sign of the flow of funds out of the market reversing. The building sector led gains with Unique Engineering and Construction UNIQ.BK jumping 12.4 percent and Sino-Thai Engineering and Construction STEC.BK climbing 8.7 percent after they offered the lowest bids for two separate contracts to build part of Bangkok’s $1.60 billion “blue line” mass transit project.
In Jakarta, investors bought strongly adding .33 % to the exchange after comments from Indonesia’s central bank reinforced expectations it would leave its key interest rate on hold at 6.5 percent on Thursday. Among gainers, Telkom Indonesia (TLKM.JK) climbed 5.4 percent and Bank Central Asia (BBCA.JK) was up 2.8 percent.
In Singapore the STI closed up .5% led by Mapletree Logistics Trust (MAPL.SI) rose 3.1 percent to S$0.835. Broker Citi said it raised Mapletree’s target price to S$0.91 and kept its ‘buy/low risk’ rating, citing its growth strategy as it was acquiring three properties.
The Philippine central bank is also expected to hold interest rates steady at a record low of 4 percent on Thursday. Gains in Maila were led by an 8.3 percent jump in Abolitiz Equity (AEV.PS) and a 3.7 percent rise in Ayala Land (ALI.PS). The main index has now risen 7.8 percent this year, Asia’s third-best performer, after it saw net foreign inflows for three straight sessions worth a combined $17.9 billion.
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