Most Southeast Asian stocks soared on Wednesday with the Philippines acquiring the highest gains after US President Donald Trump stated that Washington and Beijing were close to settling the “phase one” of the trade pact.
Trump said on Tuesday that Washington was close to finalizing the deal aimed at fixing the 16-month long trade truce with Beijing. Despite the willingness to sign the pact, the President emphasized his strong support for anti-government protesters in Hong Kong.
Trade deal optimism reemerged over the previous days but anxiety lurked as various reports disclosed that Beijing and Washington have troubles settling necessary details of tariff rollbacks.
Given that Trump ruled out a complete tariff rollback, his threat to end the truce without a deal is real, starting with the tariffs due on Dec. 15, according to a note by DBS Group Research.
“Trump will also need to decide by Dec. 2 whether to sign or veto the Hong Kong Human Rights and Democracy Act that has bipartisan support,” DBS Group added.
Philippine shares acquired 1.1% gains last Tuesday, completely recovering from seven-week lows. Most of the gains were brought by Conglomerates Ayala Land and DMCI Holdings with 3.% and 4.7% respective earnings.
Thai shares edged up boosted by energy stocks and overnight gains of crude oil prices. PTT exploration and Production Pcl hiked up with 2%.
On Tuesday, the government initiated stimulus measures of infusing more than 100 billion baht which is equivalent to $3.31 billion to enforce help to the slowing economy.
Indonesian stocks clocked in gains recuperating from four consecutive declines with index sensitive Telekomunikasi Indonesia acquiring 1.6%.
Malaysian equities jumped with utility Tenaga Nasional gaining 1%.
Vietnam shares swiped in 0.5% earnings while Singapore stocks recorded minimal changes.