Most south-east Asian stock markets edged higher on Tuesday as oil prices rose for a fourth consecutive session, although worries over a persistent global supply glut lingered. OPEC and 11 other exporters agreed in May to extend cuts in production, despite which markets have remained well supplied due to rising output elsewhere. Firming oil prices helped lift South-east Asian markets a little higher, coupled with window-dressing, as the end of the first half approaches, said Joseph Roxas, an analyst with Manila-based Eagle Equities.
Meanwhile, Fed Chair Janet Yellen is scheduled to take part in a discussion in London later on Tuesday. Investors expect her to underline her positive view on the U.S. economy, which would support the Fed’s forecast of a rate hike this year. Philippine shares closed 0.8 percent higher with International Container Terminal Services gaining 4.5 percent. Semirara Mining rose one percent.
The new Philippines environment minister Roy Cimatu said he may decide next month on the fate of dozens of mining operations and contracts that have been ordered closed, suspended or cancelled in order to protect watersheds and other natural resources.
Singapore shares edged up 0.3 percent led by gains industrials and financials. Keppel Corp and Oversea-Chinese Banking Corporation gained 0.8 percent and 0.7 percent, respectively. Bucking the trend, Vietnam shares ended 0.7 percent lower after briefly touching a nine-year intraday high.
“With a disappointing first quarter growth of 5.1 percent year-on-year, the risk is that overall (Vietnam) GDP growth for this year will once again fall short of the official target of 6.7 percent”, DBS Group said in a note. Malaysia and Indonesia were closed on account of national holidays.