Gain as risk appetite for emerging markets returns

By Geo Tharappel

(Reuters) - Southeast Asian stock markets ended higher on Friday, as uncertainty over incoming President Donald Trump's policies weighed on the dollar and U.S. bond yields, boosting risk appetite for emerging markets.

The dollar's index against a basket of six major currencies regained some ground after shedding more than 2 percent overnight, while 10-year U.S. Treasuries yield slumped to a one-month low.

"Trump's policies are likely to affect sentiment in Asian markets, but not local economies as they are quite resilient" said Grace Aller, an analyst with AP Securities.

Trump's victory had sparked expectations of tax cuts, fiscal spending and deregulation, sending U.S. bond yields and dollar higher, while prompting capital outflows from emerging markets.

Malaysian stocks gained 0.9 percent to an over two-month high, led by telecom and financial stocks as foreign investors net bought shares worth 136.4 million ringgit. The index gained 2.1 percent on the week.

Top lenders CIMB Group Holdings Bhd and Public Bank Bhd hit over one-month highs while Axiata Group Bhd jumped 6.0 percent to a two-month high.

Philippine shares ended 0.5 percent higher, led by industrial and real estate stocks. The index gained 6.0 percent on the week, its biggest weekly gain since May 13, 2016.

"Philippines is expected to outperform its Asian peers, so foreign buying has been high," Aller said.

Conglomerate Aboitiz Equity Ventures Inc gained 3.2 percent while Ayala Land Inc added 1 percent.

Vietnam shares closed 0.6 percent up with Saigon Beer Alcohol Beverage Corp and Vietcombank lifting the index higher. The index rose 2.3 percent on the week.

Singapore gained 2.8 percent on the week, Indonesia added 1 percent and Thailand rose 1.9 percent.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS

Change on the day

Market Current prev close Pct Move

Singapore 2962.63 2954.14 0.29

Bangkok 1571.48 1571.05 0.03

Manila 7248.2 7209.44 0.54

Jakarta 5347.022 5325.504 0.40

Kuala Lumpur 1675.49 1659.82 0.94

Ho Chi Minh 679.8 675.81 0.59

Change this year

Market Current End 2016 Pct Move

Singapore 2962.63 2880.76 2.84

Bangkok 1571.48 1542.94 1.85

Manila 7248.2 6840.64 5.96

Jakarta 5347.022 5296.711 0.95

Kuala Lumpur 1675.49 1641.73 2.06

Ho Chi Minh 679.8 664.87 2.24

(Reporting by Geo Tharappel in Bengaluru, Additional reporting by Ambar Warrick; Editing by Vyas Mohan)