In Thailand, the SET index surged 6 percent to 220.56 points. And in Malaysia, the Composite Index did the best of all, closing 22.5 percent, or 81.62 points, higher at 445.06. Last week, the Kuala Lumpur Stock Exchange announced restrictions on stock transactions, which effectively banned trading in its shares outside the country. Some accused the government of manipulating the market. While foreign investors are mostly sidelined by uncertainties, Malaysian investment funds, corporations and stock market traders are taking advantage of what they see as a domestic rally.
Foreigners holding stocks here are uncertain about last week's measures.
The government imposed currency controls and decreed that investors cannot take money out of Malaysia before September 1999. In addition, the central bank's announcement Monday that effective Sept. 16, it would cut the statutory reserve requirement to 4 percent from 6 percent was seen as positive for the Malaysian market. The move will effectively release billions of ringgit into the financial system. On Moscow's interbank currency exchange, trading in U.S. dollars was canceled. The Central Bank set the official rate at 18.9, down sharply from 17 on Friday.