Most Southeast Asian stocks closed higher on Monday, in line with Asian peers, as upbeat US jobs data eased concerns over the health of the world's largest economy, with Indonesia hitting a 13-month high and Philippines up more than 1%.
A job seeker fills out an application during the Best Hire Career Fair in Houston on Thursday. The US employment report on Friday fuels appetite for stocks in Southeast Asia. (Bloomberg photo)
The US employment report on Friday, which showed the economy added 287,000 jobs last month, was more than forecast and acted as an immediate impetus for investors starting the week with a greater appetite for risk.
"A stronger jobs report more or less eschews heightened concerns about the US economy coming to a screeching halt," said Vishnu Varathan, a senior economist with Mizuho Corporate Bank in Singapore.
"For the rest of the week, markets are going to be on toes ahead of the Bank of England meeting."
The Bank of England meets on Thursday and might cut its 0.5% interest rate to offset the economic drag from Britain's vote to leave the European Union.
"The main bet is whether the BoE is going to ease this week or August when they release their updated inflation forecast. We think they'd move ahead of time than wait and watch," Varathan said.
The Jakarta Composite Index gained 2%, led by financials and consumer staples, closing at its highest since June 2015.
Bank Central Asia Tbk PT and Bank Rakyat Indonesia (Persero) Tbk PT gained 2.1% and 5.6%, respectively.
Philippine shares finished 1.2% higher, led by property developers and consumer cyclicals.
SM Prime Holdings and Ayala Land gained 2.9% and 2.4%, respectively.
"The local markets may re-test the psychological resistance level of 8,000 this week, with support continuing to stay at 7,600," Manila-based SB Securities said in a note.
Singapore's Straits Times index ended 1% higher, with consumer services and financials leading the gainers.
Malaysia gained 0.6% but Vietnam closed 1% lower, dragged down by energy stocks.
The Stock Exchange of Thailand also surged on Monday.
Asian shares rose, with MSCI's broadest index of Asia-Pacific shares outside Japan jumping 1.8%.