Indonesia, Philippines rise; Sino-U.S. trade hopes lift sentiment

(Nov 15): Indonesian and Philippine stocks climbed on Thursday, in line with broader Asian peers, as reports of China delivering a written response to U.S. trade demands augured well for traders.

China has delivered a written response to U.S. demands for trade reforms, three U.S. government sources told Reuters on Wednesday, sparking optimism that the world’s two largest economies could strike a deal to end a bitter trade war.

Traders have cautiously welcomed news in recent days that Washington and Beijing have resumed informal discussions ahead of a meeting between presidents Donald Trump and Xi Jinping late this month. Few market watchers expect a trade agreement at the meeting, but hopes are growing they may agree on a de-escalation, while the two sides pursue more detailed talks.

The MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.2%.

Indonesian stocks jumped 1.1%, on track for a third straight session of gains as financial and telecommunication stocks underpinned the bullish sentiment.
 
The archipelago nation surprisingly posted a larger-than-expected trade deficit in October, as sluggish export growth failed to cover surging import bills, data from the statistics bureau showed on Thursday. Exports rose 3.59% in October to US$15.80 billion, higher than the poll’s 1.81% forecast.  

Index heavyweights Telekomunikasi Indonesia (Persero) PT rose as much as 2.7%, while shares of conglomerate Unilever Indonesia Tbk climbed up to 1.8%, on track for a third consecutive session of gains.

The Philippine benchmark index edged higher ahead of a central bank rate decision later in the session.

Analysts are evenly split on whether the Philippine central bank will raise interest rates to tackle high inflation, after the economy grew at its slowest annual pace in more than three years in the third quarter.

Conglomerate JG Summit Holdings Inc jumped as much as 6.8%, while Philippine Long Distance Telephone Co (PLDT), the country’s most valuable listed firm, gained up to 2%.

Malaysian stocks edged higher, after closing flat in the previous session, with Telekom Malaysia Bhd and CIMB Group Holdings Bhd leading the gains.  

“Overnight weakness in the U.S. markets could be dragging on stocks in Asia. I am mindful that some markets are up on reported progress in trade negotiations between the U.S. and China,” said Liu Jinshu, director of research, NRA Capital. 

Meanwhile, Thai and Singapore shares traded range-bound. 

Capitaland Ltd boosted the city-state’s bourse, climbing as much as 1.6%, while Oversea-Chinese Banking Corporation Ltd dropped up to 1.4%. 

Thai shares traded lower, dragged by losses in consumer staples and telecommunication services stocks. Digital life service provider Advanced Info Service PCL slipped 2.2%, while glass container manufacturer Berli Jucker PCL lost 4.9%.

SOUTHEAST ASIAN STOCK MARKETS AT 0407 GMT  

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