By Nikhil Subba
Southeast Asian stock markets closed higher on Wednesday, with the Philippines leading gains, as easing coronavirus restrictions in parts of the world fed hopes of a recovery in global economic activity.
Oil prices gained as U.S. stockpiles rose less than expected and on expectations that demand would pick up as some COVID-19 hotspots in Europe and within the United States moved to ease lockdowns.
"Southeast Asian equity markets have rallied as the 'peak-virus' trade picks up momentum. Markets are pricing that the partial reopening of economies around the world will spark an immediate spurt of growth," said Jeffrey Halley, a senior market analyst at OANDA.
"The MSCI Asia climbed 20% of its March lows today, triggering an official bull market and boosting sentiment in the region further," Halley added.
Broader Asia shares minus Japan <.MIAPJ0000PUS> were 0.5% higher on Wednesday.
Market participants are now awaiting a policy statement from the U.S. Federal Reserve, due to be issued at the close of the central bank's two-day meeting later in the day. The European Central Bank meets on Thursday.
In Southeast Asia, the Philippines index closed 1.2% higher, with financials and consumer companies boosting the benchmark.
Property developer SM Prime Holdings and restaurant chain owner Jollibee Foods both finished above 4%.
Indonesia stocks settled 0.8% higher, with telecom conglomerate Telekomunikasi Indonesia (Persero) jumping 6% and cement producer Indocement Tunggal Prakarsa rising 4.7%.
Based on the central bank's calculation, the Indonesian government said it may sell around 425 trillion rupiah of bonds to the market in the rest of 2020 to cover its widening fiscal deficit.
Singapore stocks finished about 0.5% higher and Thailand rose 0.6%, marking their highest close since April 20 and March 6, respectively.
Thai electronic components maker Hana Microelectronics firmed 2.8% and Singapore's DBS Group closed 0.6% higher.
(Reporting by Nikhil Subba in Bengaluru; Editing by Devika Syamnath)
