Singapore jumps 1.5%; Philippines down on higher inflation

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(Aug 7): Singapore shares jumped more than 1.5% on Tuesday boosted by strong financials, while Philippine shares slipped on data showing annual inflation quickened in July, cementing expectations for further policy tightening this week.

Singapore shares jumped the most since April 18, helped by gains in United Overseas Bank Ltd, which rose more than 3%, and Oversea-Chinese Banking Corp, which extended gains on upbeat corporate results.

Philippine annual inflation accelerated in July and moved away from the central bank's comfort range. Inflation quickened to 5.7%, the fastest rise in over five years, due to higher food and transport costs, and beat a Reuters' poll estimate of 5.5%.

"Philippine markets are reacting to the inflation figure that came at a new height, which basically disappointed investors and raised concerns about an overheating economy," said Lexter Azurin, senior analyst, AB Capital Securities.    

Manila's main index extended declines to a second session, largely pulled down by losses in industrials.

SM Investments Corp dropped as much as 2.5%, while Aboitiz Equity Ventures slipped up to 2.8%.

Despite upbeat economic growth data, Indonesian shares shed previous session's gains to edge lower on Tuesday.

Southeast Asia's largest economy beat forecast and grew 5.27% from a year earlier in the second quarter, data showed on Monday, still lagging behind the target of 7% that President Joko Widodo set when he joined office in 2014.

The biggest drags on the index were consumer goods company Unilever Indonesia, which lost as much as 2.3%, while Telekom Indonesia slipped more than 1.6%.

An index of the country's 45 most liquid stocks edged 0.6% lower.

Malaysian shares climbed with IHH Healthcare rising up to 2.9%, while Vietnam stocks were on track to snap three sessions of gains.

Thai shares edged lower with Kasikornbank falling as much as 1.8%.


Market          Current   Previous close  % move
Singapore       3338.32   3285.34         1.61
Bangkok         1693.89   1696.24         -0.14
Manila          7747.47   7817.31         -0.89
Jakarta         6087.359  6101.131        -0.23
Kuala Lumpur    1787.59   1779.75         0.44
Ho Chi Minh     956.1     960.23          -0.43

Change on year

Market          Current   End 2017        % move
Singapore       3338.32   3402.92         -1.90
Bangkok         1693.89   1753.71         -3.41
Manila          7747.47   8558.42         -9.48
Jakarta         6087.359  6355.654        -4.22
Kuala Lumpur    1787.59   1796.81         -0.51
Ho Chi Minh     956.1     984.24          -2.86