Singapore, Malaysia stocks gain as risk appetite returns- Nikkei Asian Review

SINGAPORE (Nikkei Markets) — Singapore and Malaysian shares rose Wednesday, mirroring a recovery in most regional markets, as concerns over geopolitical tensions involving North Korea ebbed, boosting investor appetite for risk assets.

The Nikkei Asia300 Index of companies outside Japan rose 0.6% as risk aversion caused by North Korea’s missile launch on Tuesday receded. U.S. markets ended higher overnight after falling earlier in the session. U.S. President Donald Trump warning that all options were on the table in response to the Pyongyang’s move did not have much of an impact on markets.

“Calmer heads have prevailed once again in financial markets, with traders seemingly happy to cover short positions and add a touch of risk into their portfolios,” said Chris Weston, chief market strategist at Melbourne-based broker IG.

Singapore’s FTSE Straits Times Index advanced 0.5% to 3,265.26. Banking stocks recovered from Tuesday’s losses, as did index heavyweight Singapore Telecommunications. DBS Group Holdings and Oversea-Chinese Banking Corp. rose at least 0.7% each and Singtel climbed 0.3%.

Singapore Technologies Engineering ended unchanged at S$3.54. The company said late Tuesday its land systems arm, Singapore Technologies Kinetics, had injected capital amounting to S$10.2 million ($7.55 million) into LeeBoy India Construction Equipment as working capital.

ISOTeam advanced 1.5% after the building maintenance company bagged 15 new projects worth S$24.2 million.

The FTSE Bursa Malaysia KLCI ended up 0.7%.

Axiata Group advanced 1.7% after Malaysia’s largest mobile operator said Wednesday its net profit rose more than two times in the second quarter, thanks to a one-off gain from the disposal of its stake in an associate and lower write-downs at its Indonesian operations.

Axiata also said its infrastructure unit plans to acquire telecommunications towers in Pakistan in a deal worth $940 million.

Malayan Banking, Malaysia’s largest banking group by assets, ended…

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