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SE Asia Stocks-Inch up ahead of Fed meeting; Singapore hits 4-week high
June 12, 2017 / 5:23 AM / 5 months ago

SE Asia Stocks-Inch up ahead of Fed meeting; Singapore hits 4-week high

    By Shashwat Pradhan
    June 12 (Reuters) - Most Southeast Asian stock markets edged
up on Monday ahead of a U.S. Federal Reserve policy meeting that
could give hints on the pace of further rate tightening in the
months to come and next year.
    With the Fed widely expected to raise interest rates at its
two-day meeting that ends on Wednesday, investors will be
focussing on whether the central bank thinks the U.S. economy is
robust enough to withstand further rate hikes through 2017 and
how it plans to whittle down its massive balance
sheet. 
    "A 25 basis point rate hike is assumed to be a done deal for
the June FOMC (Federal Open Market Committee); with interest
rate markets ascribing over 90 percent probability," Mizuho Bank
said in a note.
    "This means a 25 basis point hike is baked into market
(prices), and so failure to yank the trigger will result in a
dovish knee-jerk reaction; but this is the outside risk."
    MSCI's broadest index of Asia-Pacific shares outside Japan
, however, was down 0.8 percent as the region's
technology heavyweights were knocked lower by a slide in U.S.
tech shares.
    Singapore shares rose as much as 0.5 percent to a
four-week high, driven by financials, before paring some of the
gains.
    In other markets, Indonesia was up 0.5 percent with
consumer stocks driving the gains. Investors are awaiting Bank
Indonesia's policy rate decision expected later this week.
    "(We) expect Bank Indonesia to keep its policy rate steady
this week. While Q1 GDP growth came in slightly disappointing,
there are enough data to suggest stronger growth momentum in
H2," DBS Group said in a note.
    Vietnam shares rose 0.5 percent, led by FLC Faros
Construction, which jumped as much as 6.9 percent to
post its biggest intra-day percentage gain in more than three
months.
    FLC Group, whose chairman holds a majority stake in
FLC Faro Construction, said it is working with Airbus
to lease about seven aircraft by 2018. FLC Group aims to start a
new airline that could take to the skies for the first time
early next year.
    Bucking the trend, Thai shares slipped, dragged down
by telecom and healthcare stocks. 
    The Malaysian and Philippine markets were closed for local
holidays.
    
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS: Change at 0445 GMT
    
 Market                    Current      previous    Pct Move
                                        close       
 Singapore                 3257.24      3254.19     0.09
 Bangkok                   1565.23      1566.65     -0.09
 Jakarta                   5704.928     5675.523    0.52
 Ho Chi Minh               753.41       749.72      0.49
                                                     
 Change so far this year                             
 Market                    Current      End 2016    Pct Move
 Singapore                 3257.24      2880.76     13.07
 Bangkok                   1565.23      1542.94     1.44
 Jakarta                   5704.928     5296.711    7.71
 Ho Chi Minh               753.41       664.87      13.32
 


 (Reporting by Shashwat Pradhan in Bengaluru; Editing by
Subhranshu Sahu)
  

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