Southeast Asian stocks higher on soft Chinese inflation data

Most Southeast Asian stocks closed higher on Tuesday, as China's consumer inflation eased in July, with sentiment across the region up on hopes of further policy easing if needed in the world's second largest economy.

China's consumer price index rose 1.8% in July from a year earlier, in line with analysts' expectations, compared with a 1.9% increase in June and matching this year's low hit in January.

Low inflation means Beijing has room to loosen monetary policy if needed, but policymakers appear to have disparate views over how much stimulus is needed to stoke economic growth, if any, and what form it should take.

"The lower Chinese inflation data gives investors something to look forward to in terms of further policy easing," said Victor Felix of AB Capital Securities Inc in Manila.

Singapore shares finished up 1.51% after rising as much as 2% earlier in the day, the biggest intraday percentage gain since June 30. 

Bluechips such as Jardine Cycle and Carriage Ltd and Singapore Telecommunications led the gainers.

The Philippine index ended 0.77% higher, as investors welcomed a bunch of positive corporate earnings.

Ayala Land, one of the top gainers on the index, rose more than 2% after reporting strong half-yearly results.

"I think here in Philippines, the movement is more focussed on the corporate earnings this week," said Grace Aller of AP Securities in Manila.

Vietnam shares closed 1.25% higher, helped by a rally in the energy sector. Petrovietnam Gas Joint Stock Corp was up 1.7%.

Indonesia closed marginally lower, while Malaysia was little changed. 

Asian shares rose, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1%.