KUALA LUMPUR: Most Southeast Asian stock markets were higher on Tuesday, with the Malaysian and Philippine indexes up nearly 1 percent as investors start to factor in the effects of Trump presidency on emerging economies and their currencies. The rebound comes after some regional markets as well as their currencies, including the Malaysian ringgit and the Indonesian rupiah, fell on Friday over investor fears that a rise in U.S. interest rates under incoming President Donald Trump could suck capital out of emerging markets.
U.S. Treasury yields extended their rise overnight and the dollar hovered near a 14-year high on Tuesday, and the combination of the two have derailed Asian currencies and equities, particularly in South Korea, Taiwan and Indonesia, which have seen big inflows this year.
“People are already pricing in the Trump presidency and the repercussions on their own economies,” said Joseph Roxas, an analyst at Manila-based Eagle Equities.
“The (regional) currencies are recovering, so the markets are recovering as well after quite a long down period. We should expect a little rally after such a big drop.”
The ringgit rose slightly on Tuesday after hitting its weakest in more than 12 years in offshore markets, while the rupiah was up marginally in early trade after falling 2.7 percent to its lowest in more than four months on Friday.
Regional markets were also buoyed by rising oil prices which moved away from a nearly two-month low struck the day before, pushed higher by expectations of falling shale output and renewed optimism that OPEC will deliver on touted production cuts.
Philippine shares rose after a two-day losing streak, led by financials, property and telecom stocks. Property developer SM Prime Holdings Inc gained as much as 2.9 percent, while telecom company PLDT Inc rose as much as 4.5 percent.Malaysia rose after two straight sessions of declines, led by consumer shares and telecom.
Entertainment firm Genting Bhd gained as much as 2.2 percent, while telecom company Axiata Group Bhd rose as much as 5.7 percent.
Indonesia and Singapore were up nearly 0.5 percent ahead of trade and retail sales data. Bucking the trend, Thailand was down 0.4 percent.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade after falling nearly 5 percent since Trump’s shock victory.
