* China, Germany, Thailand line up policies to spur growth
* Indonesian shares hit over two-week high
* Thai stocks gain despite Q2 GDP growth slowest in nearly 5
years
By Niyati Shetty
Aug 19 (Reuters) - Most Southeast Asian stock markets gained
on Monday, as hopes that central banks around the world would
unleash new stimulus to boost growth eased concerns over a
global recession.
Such hopes found support from the Chinese central bank's
interest rate reforms over the weekend, seen lowering corporate
borrowing costs, and reports of new fiscal stimulus in Germany.
The Sino-U.S. trade dispute has dampened growth in Southeast
Asian economies, and any policy support by the region's major
trading partner - China - to shore up domestic demand will help
bring buyers back to the equities market.
Singapore stocks .STI clawed back ground from previous
session's losses, supported by financials. Lender
Oversea-Chinese Banking Corporation Ltd OCBC.SI added 0.8%,
while peer United Overseas Bank Ltd UOBH.SI gained 0.4%.
Asian markets may gain "on optimism that German if not
Eurozone policy stimulus could be forthcoming," OCBC Bank said
in a note, adding that, "Singapore may trade firmer between a
3,100-3,150 range amid positive Friday cues from Wall Street."
The Indonesian benchmark index .JKSE advanced to touch its
highest in more than two weeks, buoyed by gains in consumer and
financial stocks. Instant noodles maker Indofood CBP Sukses
Makmur ICBP.JK rose as much as 4.3%, while the Bank Central
Asia BBCA.JK added 1.2%.
The archipelago's president on Friday proposed $178 billion
budget for 2020, that targeted a slightly optimistic gross
domestic product growth of 5.3% for the year. Also soothing markets, U.S. President Donald Trump and top
White House officials on Sunday dismissed economic growth
concerns, saying they saw little risk of recession. Investors
were rattled last week after signals from the bond market
sparked fears of a sharp global slowdown.
Thai equities .SETI gained 0.8% even as government data on
Monday showed the trade-dependent economy grew at its slowest
annual pace in almost five years in the second quarter on lower
exports and soft domestic demand. The country's finance minister on Friday, however, said
Thailand was planning a $10 billion stimulus package to shore up
the slackening economy. The financial and energy sectors supported Thai shares, with
Siam Commercial Bank PCL SCB.BK and conglomerate PTT PCL
PTT.BK adding 2.8% and 1.2%, respectively.
The Philippine index .PSI and Vietnam shares .VNI traded
marginally higher, while Malaysian stocks edged down.
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0410 GMT
Change on the day
Market Current Previous close Pct Move
Singapore 3131.98 3115.03 0.54
Bangkok 1637.71 1631.4 0.39
Manila 7813.03 7795.98 0.22
Jakarta 6306.832 6286.657 0.32
Kuala Lumpur 1597.97 1599.22 -0.08
Ho Chi Minh 981.84 980 0.19
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3131.98 3068.76 2.06
Bangkok 1637.71 1563.88 4.72
Manila 7813.03 7,466.02 4.65
Jakarta 6306.832 6,194.50 1.81
Kuala Lumpur 1597.97 1690.58 -5.48
Ho Chi Minh 981.84 892.54 10.01