* Singapore shares hit their highest in a week
* Investors await minutes of Fed July meet due on Wednesday
* Philippine stocks down 1.2%
By Niyati Shetty
Aug 20 (Reuters) - Most Southeast Asian stock markets eked
out gains on Tuesday as global policymakers step in to support
their economies, in a bid to stave off a sharp economic
slowdown, boosting riskier assets.
Sentiment got a lift after China took steps to lower
borrowing costs for companies and Germany hinted plans of
ramping up government spending to counter a future crisis.
The Washington Post on Monday reported that senior White
House officials are discussing the possibility of a temporary
payroll tax cut to boost the U.S. economy, reinforcing hopes
that major economies will step in to ensure growth. The Singapore bourse .STI extended gains to its highest in
a week, boosted by real estate stocks. Capitaland Ltd CATL.SI
and Hongkong Land Holdings Ltd HKLD.SI were among the top
gainers in the index, rising 1.7% and 2.3%, respectively.
Hongkong Land is "among stocks that have underperformed the
broader market but are now offering attractive buying
opportunities due to their undemanding valuations," KGI
Securities (Singapore) said in a note to clients.
Gains in the regional markets, however, were capped as
investors kept a cautious stance awaiting Wednesday's release of
minutes from the U.S. Federal Reserve's July meeting. Fed Chair
Jerome Powell's speech at the end of the week might provide
further insight on the central bank's policy stance.
The Thai benchmark .SETI gained despite the central bank
saying it would lower its 2019 growth forecast of 3.3% amid
growing risks, as investors anticipate the proposed $10 billion
stimulus package to boost economic growth. Malaysian equities .KLSE advanced up to 0.3%, while the
Vietnam index .VNI was poised to extend gains to a fifth
straight session.
Bucking the trend, Philippine stocks .PSI declined up to
1.2% after clocking gains in the previous session.
"The decline is just a normalisation of the swing that we
saw late yesterday (Monday)," said Charles William Ang, analyst,
COL Financial Group. "If we consider the bigger picture we might
just be in line with the regional markets."
Losses in financial and consumer sectors pulled down the
Philippine index, with Security Bank Corp SECB.PS falling up
to 3% and Universal Robina Corp URC.PS retreating 4.2%.
Meanwhile, Indonesian stocks .JKSE traded largely
unchanged. The archipelago's finance minister Sri Mulyani
Indrawati said on Monday she wants to reduce foreigners'
holdings of government bonds over the near-term to 20% from
almost 40% currently, to reduce volatility in the financial
markets. Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS AS AT 0349 GMT
Market Current Previous close Pct Move
Singapore 3138.45 3128.45 0.32
Bangkok 1639.1 1637.26 0.11
Manila 7848.64 7938.35 -1.13
Jakarta 6300.567 6296.715 0.06
Kuala Lumpur 1599.83 1596.45 0.21
Ho Chi Minh 983.06 981.03 0.21
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3138.45 3068.76 2.27
Bangkok 1639.1 1563.88 4.81
Manila 7848.64 7,466.02 5.12
Jakarta 6300.567 6,194.50 1.71
Kuala Lumpur 1599.83 1690.58 -5.37
Ho Chi Minh 983.06 892.54 10.14