Indonesia jumps on strong economic growth data

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(Aug 6): Indonesian shares jumped more than 1.5% on Monday after data showed Southeast Asia's largest economy grew the fastest in 4½ years in April-June, while Thai stocks dropped for a second session in three.

Indonesia's economy grew 5.27% from a year earlier in the second quarter, helped by robust consumption during the Muslim fasting month, and beat a Reuters poll projection of 5.16%.

The stronger growth was driven by an increase in private consumption and government expenditure, which boosted purchasing power, said Leo Putra Rinaldy, an economist at Jakarta-based Mandiri Sekuritas.

"The (GDP) number will provide some relief for both the central bank and the government that has been overseeing rate hikes amid a pressured rupiah and had hiked a cumulative 100bps since May 2018," OCBC Bank said in a note.

The Jakarta SE Composite Index rose to a two-month closing high in heavy trade, led by financials and telecoms.

Telekom Indonesia ended 5.5% higher, while Astra International rose 4.2%.

Among other Southeast Asian stock markets that gained, Singapore rose 0.60% with financials at the helm.

Oversea-Chinese Banking Corp advanced 2% after the lender beat market expectations with a 16% rise in quarterly profit.

Thai shares gave up early gains to close about 1% lower with Indorama Ventures and Bangkok Dusit Medical Services shedding 5.8% and 3.7% respectively.

Philippine shares closed little changed after declining to a more than two-month low, with losses in industrials and telecommunications outweighing gains in real estate stocks.

SM Investments Corp closed 0.7% lower, while Ayala Land rose 3.6%.

Local investors now await July inflation data ahead of a central bank meeting on Thursday.

The annual inflation likely quickened for a seventh straight month in July due to higher food, fuel and utility costs, according to a Reuters poll.

Asian shares pared gains as Chinese stocks swung into negative territory, dragged lower by the escalating Sino-US trade war.    

SOUTHEAST ASIAN STOCK MARKETS
Change on the day

Market             Current   Previous close  % move
Singapore          3285.34   3265.73         0.60
Bangkok            1696.24   1712.09         -0.93
Manila             7817.31   7819.39         -0.03
Jakarta            6101.131  6007.538        1.56
Kuala Lumpur       1779.75   1780.09         -0.02
Ho Chi Minh        960.23    959.6           0.07

Change on year

Market             Current   End 2017        % move
Singapore          3285.34   3402.92         -3.46
Bangkok            1696.24   1753.71         -3.28
Manila             7817.31   8558.42         -8.66
Jakarta            6101.131  6355.654        -4.00
Kuala Lumpur       1779.75   1796.81         -0.95
Ho Chi Minh        960.23    984.24          -2.44