Asean markets to trail behind the East Asian markets
SINGAPORE: Southeast Asian stock markets ticked up on Monday as investors heaved a sigh of relief after North Korea held back on a missile test, with Vietnam hitting an over 9-1/2-year high.
The United States and its allies had been bracing for another long-range missile launch on Saturday, following multiple such launches in recent weeks that heightened tensions globally.
"With North Korea seemingly holding back on its ICBM test for now, there is a small degree of risk relief in market, resulting in the paring of long positions in safe havens," Mizuho Bank said in a note.
Meanwhile, the dollar index, which tracks the U.S. unit against a basket of six major currencies, edged up, after skidding to a 2-1/2-year low on Friday.
However, the dollar index is still down over 10 percent so far this year.
A weaker dollar increases the purchasing power of regional currencies, underpinning stocks, said Taye Shim, head of research at Mirae Asset Sekuritas.
Singapore shares gained as much as 0.4 percent, boosted by lenders and consumer staples stocks.
Oversea-Chinese Banking Corp and DBS Group rose 1 percent and 0.6 percent, respectively, while Thai Beverage climbed 2.2 percent, its biggest intraday percentage gain in nearly seven weeks.
Malaysian shares inched up 0.2 percent, supported by a 1 percent gain in conglomerate Sime Darby Bhd
, ahead of the release of July data on industrial output, which is expected to have expanded at its fastest pace in eight months.
Thai shares rose 0.4 percent, heading for their eighth straight session of gains, boosted by Airports of Thailand, which gained as much as 2.7 percent to hit a record high.
Vietnam shares rose 0.5 percent to its highest since February 2008, and were also headed for their eighth consecutive session of gains. - Reuters
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