(Corrects headline and first paragraph to show Thai index
hit 8-month high, not a 3-week high)
* Thai stocks at 8-month high
* Financials lift Indonesia and Singapore
* Malaysia, the Philippines end 3-day gains
By Viparat Jantraprap
BANGKOK, June 3 (Reuters) - Banking and building firms
powered Thai shares to an 8-month high on Wednesday, while an
interest rate cut triggered buying of financials and index
heavyweights in Indonesia.
Asian shares hit eight-month highs after U.S. home sales
data added to optimism about the global economic recovery and
the dollar struggled off its latest set of lows for the year.
"The stock market rallies were mainly liquidity driven. The
market gains went beyond fundamentals and we expect this
phenomenon to continue," Viwat Techapoonphol, a strategist at
Tisco Securities, said.
Thailand's main stock index .SETI finished up 1.4 percent
after falling nearly one percent on Tuesday. Siam Commercial
Bank (SCB.BK), the country's third biggest bank, rose 8.6
percent, while fourth-ranked Kasikornbank KBAN.BK added 6.4
percent.
Investors bought construction-related firms after a Thai
court upheld the use of an executive decree empowering the
government to borrow $11.7 billion domestically to boost the
country's ailing economy.
Siam Cement SCC.BK, the country's top cement firm, rose
2.6 percent, while smaller peer TPI Polene TPIP.BK jumped
18.3 percent. Steel bar producer Tata Steel TSTH.BK added 1.2
percent.
Indonesia's index .JKSE rose 0.6 percent after its
central bank cut interest rates by 25 basis points to 7 percent
and pointed to more reductions to come.
Perusahaan Gas Negara (PGAS.JK) climbed 6.3 percent and
Bank Danamon (BDMN.JK) rose 2.5 percent.
Singapore's index .FTSTI ended up 0.3 percent after a 0.2
percent loss on Tuesday, with United Overseas Bank (UOBH.SI)
and DBS Group (DBSM.SI), Southeast Asia's biggest bank, each
gaining more than two percent.
Among decliners in the region, Malaysia's index .KLSE and
the Philippine index .PSI each dropped 0.8 percent after
rising in the last three sessions. Malaysia's Tenaga Nasional
(TENA.KL) fell 1.95 percent, while Metrobank (MBT.PS) in Manila
lost 5.4 percent.
($1= 33.99 Baht)
(Editing by Darren Schuettler)
