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SE Asian markets rebound but investors remain wary

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September 19, 2008
Global Credit Crisis:
   - ADB calls for concerted action as Asian bankers meet in Bangkok
   - Joint operation launched to ease market concerns
   - Clients at AIG’s Singapore unit remain nervous
   - Thailand’s AIG Retail Bank gets liquidity injection

September 18, 2008
US Finance System Meltdown:
   -SE Asian markets remain gloomy despite AIG rescue
   -AIA units distance themselves from parent’s woes

September 17, 2008
US finance system meltdown:
   -Thailand: Central bank sees little impact on AIG unit
   -Singapore: MAS reassures worried AIG policyholders
   -Philippine banks raise provisions to reduce exposure
   -Indonesia cuts loan rates as US credit woes spread
   -US crisis biggest risk to Asia growth - ADB


September 20, 2008

SE Asian markets rebound but investors remain wary
Southeast Asian stocks leapt on Friday as investors turned positive on hopes of a long-term cure for global market turmoil, with financials such as Singapore's DBS and Bangkok Bank driving gains, reported ReutersSingapore's Straits Times benchmark index closed up 5.8 percent for its biggest single day gain since August last year, to erase the week's losses. Bourse operator Singapore Exchange surged 10.5 percent and seven other stocks saw double-digit gains, after the Chinese government unveiled bold measures to bolster its sagging markets, boosting Singapore-listed Chinese shares.

Indonesia jumped 5.8 percent to its highest in a week while Thailand was up 4.1 percent, though it was still over 4 percent lower for the week.

While many traders were energised by the rapid upturn across the region, after governments took radical steps to restore confidence, most acknowledged the crisis was far from over.

"This is just a relief rally, a very strong relief rally -- I think the market could still go up next week," said Gabriel Gan, head of sales trading at AmFraser Securities in Singapore.

Malaysia gained 3.4 percent but failed to recoup the week's losses, giving up about 2 percent this week.

The Philippine index and Vietnam both swelled 4.7 percent, though Vietnam is still down over 52 percent since the year started.

Banks led gains with Singapore's DBS and United Overseas Bank jumping by more than 6 percent, Malaysia's Bumiputra Commerce rising 7 percent and Thailand's Bangkok
Bank up 6 percent.

Resource stocks also performed strongly, with Indonesia's top coal producer Bumi Resources jumping 22.5 percent and Malaysian palm oil firm IOI Corp up 6.9 percent.

Oil prices climbed over $100 a barrel and Malaysian palm oil futures rose 3.4 percent.Analysts expect further volatility in the near term, while some are optimistic markets had come close to a bear market bottom in the last week.

"While the next month or so may be messy, there is a good chance that we have actually seen the bottom in shares or if not we have come very close," said Shane Oliver, head of investment strategy at AMP Capital Investors.

"The investor panic we have seen in the last week or so is the sort of thing normally seen at major bear market bottoms."

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