The main Jakarta stock index, which had traded sideways early in the day, settled 0.6 percent higher after the global ratings agency affirmed the country's credit rating at 'BBB' with its outlook as stable.
"Indonesia has benefited from improved global risk appetite towards emerging markets following the U.S. Fed's shift to more dovish monetary policy communication late last year," the agency noted.
The agency added that Indonesia's ratings balance a favourable GDP growth outlook and a small government debt burden with external challenges.
Boosting the index were consumers stocks. Paper product makers Indah Kiat Pulp & Paper Tbk rose 3.1 percent while Pabrik Kertas Tjiwi Kimia Tbk gained 6.1 percent.
Singapore index pared losses to end little changed as lenders UOL Group Ltd rose 1.8 percent while DBS Group Holdings Ltd added 0.5 percent.
Vietnamese stocks rose as utilities and industrial stocks boosted the index, but gains were capped by a drop in consumer shares.
Oil and gas refiner Petrovietnam Gas JSC rose 0.7 percent, while construction company Coteccons Construction advanced 1.6 percent.
Meanwhile, Thailand, Malaysia and Philippines lost ground as caution took hold after mixed data emerged from China.
China's January-February industrial output slipped to a 17-year low, but investment picked up pace during the period as the government boosted road and rail projects in a bid to avert a slowdown.
Philippine shares were dragged by industrial heavyweights such as JG Summit Holdings Inc and SM Investments Corp.
Malaysian stocks also edged lower, with telecommunications major Axiata Group Berhad losing about 1.4 percent.
Consumer stocks such as Home Product Center PCL and Siam Makro PCL dragged the Thai index lower.
(Reporting by Rashmi Ashok; Editing by Shreejay Sinha)
By Rashmi Ashok
