(Corrects last paragraph in Aug 19 report to say Fitch
Solutions, not Fitch Ratings)
* Philippine shares gain most, up 1.8%
* Thai stocks rise on fiscal stimulus hopes
* Fitch raises 2019 growth forecast for Malaysia
By Niyati Shetty
Aug 19 (Reuters) - Most Southeast Asian stock markets closed
higher on Monday as investors cheered interest rate reforms by
China's central bank, with Philippine shares adding nearly 2%.
The People's Bank of China said on Saturday it would improve
the mechanism used to establish the loan prime rate from this
month, in a move to further lower real interest rates for
companies as part of broader market reforms. Analysts say the move underscores the government's attempts
to use reforms to support an economy that has been hit hard by a
bruising trade war with the United States.
Meanwhile, the U.S. Federal Reserve is back in focus this
week as investors await the minutes of its July meeting and
Chair Jerome Powell's speech at the Jackson Hole symposium, to
get further clarity on the central bank's policy stance.
Leading the gains in Southeast Asia on Monday, Philippine
shares .PSI jumped to a more than two-week closing high.
Packaged food maker Universal Robina Corp URC.PS gained 6.5%,
while conglomerate JG Summit Holdings JGS.PS rose 6.1%.
"Investors are calm compared to last week when there was a
deluge of negative events," said Rachelle C Cruz, an analyst
with AP Securities.
Singapore stocks .STI rose 0.4%, with agribusiness firm
Wilmar International WLIL.SI adding 2.7%, while real estate
firm Hongkong Land Holdings HKLD.SI advanced 1.6%.
Thai shares .SETI eked out gains even as the government
cut it 2019 growth forecast after data showed the economy
expanded at its slowest pace in nearly five years in the second
quarter. Investors were optimistic that a planned $10 billion
stimulus package announced on Friday would provide some support
to the slackening economy. "All eyes are now on the government's announcement of the
fiscal stimulus package," ING said in a note, adding that "it
needs to be seen how quickly this stimulus gets off the ground
to kick-start the economy over the remainder of the year".
Energy and industrial stocks were the top gainers, with oil
& gas firm PTT PCL PTT.BK and Airports of Thailand AOT.BK
adding 1.2% and 1.4%, respectively.
Vietnam .VNI and Indonesian shares .JKSE closed
marginally higher, while Malaysian stocks .KLSE retreated
slightly.
Fitch Solutions on Monday raised its 2019 growth forecast
for Malaysia after the country reported stronger-than-expected
growth for the first half, but flagged intense pressure from
exports over the coming quarters. Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
Market Current Previous close Pct Move
Singapore 3128.45 3115.03 0.43
Bangkok 1637.26 1631.4 0.36
Manila 7938.35 7795.98 1.83
Jakarta 6296.715 6286.657 0.16
Kuala Lumpur 1596.45 1599.22 -0.17
Ho Chi Minh 981.03 980 0.11
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3128.45 3068.76 1.95
Bangkok 1637.26 1563.88 4.69
Manila 7938.35 7,466.02 6.33
Jakarta 6296.715 6,194.50 1.65
Kuala Lumpur 1596.45 1690.58 -5.57
Ho Chi Minh 981.03 892.54 9.91