* Optimism about the election boosts Indonesian stocks
* Singapore shares consolidate, investors await earnings
* Investors cautious amid concerns about global economy
By Kevin Yao
SINGAPORE, July 7 (Reuters) - Indonesian shares rose on
Tuesday as investors braced for President's Susilo Bambang
Yudhoyono's re-election this week to spearhead pre-growth
policy, while other Southeast Asian stocks moved in tight
ranges.
Investor sentiment remained cautious amid lingering doubts
about the strength of the global economic recovery and ahead of
the corporate earnings reporting season.
Indonesia's main stock index .JKSE rose 2.37 percent, a
day before the election which is likely to hand President
Yudhoyono another five years in office to push reforms to help
attract foreign investment.
Gabriel Yap, senior dealer director at DMG & Partners in
Singapore, said the market had priced in a victory for
Yudhoyono in line with opinion polls but cautioned about any
surprises.
"It will definitely be helpful for the share market," he
said.
Consumer and banking stocks would benefit from a recovery
in Indonesia's economy, one of the most resilient in Asia
during the global economic slowdown, he added.
Indonesia's main stock index .JKSE has already rallied
some 40 percent since April's parliamentary elections. For a
story on possible market impacts from Indonesian poll, click:
[ID:nJAK463002]
The MSCI index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS edged up 0.1 percent, with stocks in Taiwan
rising but those in Shanghai falling.
It was a similar picture in Southeast Asia, with
Philippine's index .PSI gaining 0.9 percent and Singapore'
stocks .FTSTI edging up 0.3 percent, but Vietnam's stocks
.VNI falling 1.46 percent while Thailand's shares .SETI
sheding 0.5 percent.
"The market is pausing with investors waiting for corporate
results. All the recent optimism has been given away after the
U.S. jobs report," said a trader in Singapore.
Economists have voiced optimism that the world's biggest
economy would start growing again this quarter, but a bleak
U.S. employment report last week has prompted doubts over the
stamina of the global recovery, spurring a sell-off in risky
assets.
One of President Barack Obama's economic advisers said the
United States should consider the need to top up the $787
billion rescue package passed early this year. [ID:nSP379268]
Oil CLc1 hovered near five-week lows, trading below $64 a
barrel on doubts about an early global economic recovery.
(Editing by Jan Dahinten)
