World Economy

SE Asia Stocks Recover, Europe Sees Slight Gains

SE Asia Stocks Recover, Europe Sees Slight GainsSE Asia Stocks Recover, Europe Sees Slight Gains

Most Southeast Asian stock markets recovered from early fall to close higher on Tuesday as investors started looking beyond the North Korea issues.

Singapore shares led the gains in the region with a rise of 0.6%. Financials accounted for most of the gains with DBS Group Holdings, Singapore's biggest financial stock by market value, rising 2.1% and Oversea-Chinese Banking Corp climbing 1.4%, Reuters reported.

Data released after market hours on Monday showed that the city-state's factory activity expanded at its fastest pace since November 2014, helped by a rise in new orders, new exports and factory output.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% as expectations that Beijing will maintain support for its economy ahead of a key congress supported Chinese stocks and metals prices.

Philippine shares recovered from early falls to close slightly higher, extending gains into a fourth session. "Market was down all day long, however, on the pre-close there was some last-minute buying that pushed up the stocks of select companies such as SM Investments, Jollibee and Megaworld," said Lexter Azurin, a senior analyst with Manila-based AB Capital Securities.

Industrial and consumer discretionary stocks led the upward charge with Jollibee Foods Corp rising 2.5% and SM Investments climbing 0.9%. Data released earlier in the day showed that the country's annual inflation in August quickened for the second straight month.

Indonesian shares snapped five consecutive sessions of falls to end the day up 0.28% with Bank Central Asia rising 0.7%. Vietnam shares extended gains into a fourth session and closed at their highest level in four weeks. Vietcombank rose as much as 3.2% to its highest since August 9.  

European Markets

European markets posted slight gains on Tuesday, as investors brushed off lingering geopolitical concerns and directed their attention to deal-making.

The pan-European Stoxx 600 came off its highs, last standing up 0.13% during afternoon deals, with most sectors in positive territory. Autos led the way, with the sector up 1.3%.

Looking to major bourses, Germany's DAX was up 0.57%, leading the gains compared to performance seen in peripheral bourses and the UK's FTSE 100 and France's CAC.

Basic resources stocks posted solid gains on Tuesday, after upbeat factory activity data in China. Mining giants Anglo American, BHP Billiton and Rio Tinto were all trading higher on the news.

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