Philipino, Malaysian Stocks Rebound

Stocks in the Philippines and Malaysia rebounded from oversold territory yesterday as investors bought shares that had been sold on worry about the European economy but late selling in the region suggested risk appetite remains weak.

The Philippine index surged 3.1 percent, pushing the index above the “oversold” mark, with its 14-day relative strength index (RSI) closing at 42.56, compared with 26.97 on Wednesday. A level of 30 or lower indicates the market is oversold.

Malaysia saw $62 million in foreign inflows on Thursday after $57 million in outflows in the previous session while Thailand posted $50.83 million in inflows, reversing Wednesday’s $5.6 million in outflows, stock exchange data showed.