(Aug 16): Thai stocks were higher on Friday as the country elected a new prime minister after a recent spate of political instability, while other Asian currencies and stocks headed for weekly gains as investors shrugged off recession fears in the United States.

Thai stocks were up 0.9%, as of 0805 GMT, and set for a 0.3% weekly gain. The index has lost nearly 9% this year. However, the baht was largely flat.

Political newcomer Paetongtarn Shinawatra became Thailand's youngest prime minister two days after the Constitutional Court dismissed Prime Minister Srettha Thavisin for ethics violations.

"This isn't the first time it has happened and seasoned emerging market investors are quite aware of the political issues in Thailand," said Daniel Tan, portfolio manager at Singapore-based Grasshopper Asset Management.

"We (have) seen that happened before with previous prime ministers ... global investors continue to invest in Thai assets."

Pressure on other Southeast Asian stocks and currencies eased after last week's market turmoil triggered by recession fears.

The Philippine peso was 0.1% lower but was set for its sixth straight weekly gain, a day after the central bank cut its benchmark borrowing rate by 25 basis points, in the first rate cut since Nov 2020.

The central bank has room for one more cut this year, its governor said.

Philippine stocks rose as much as 2.6% to their highest since early April, and were set for a 3% weekly gain.

"It (one more cut) is entirely plausible because their inflation data is going to drop really quite meaningfully over the next couple of months," said Robert Carnell, regional head of Asia Pacific research at ING.

In Indonesia, markets await the central bank's monetary policy meeting next week, where Bank Indonesia (BI) is expected to keep interest rates on hold to support the rupiah, a Reuters poll found.

Shares in Indonesia were up 0.3%, set for their best week since the start of July, while the rupiah was flat, but on track for its third weekly gain.

Malaysian data showed that gross domestic product in the second quarter of 2024 expanded by slightly more than expected. The central bank said growing expectations of US policy rate cuts alleviated pressure on regional currencies.

The benchmark jumped 0.5%, set for its strongest weekly performance since late April, while the ringgit inched lower by 0.1%.

Elsewhere, Singapore stocks added 1.1%, while stocks in Taiwan rose as much as 2.2% to hit highest level since Aug 1.

Uploaded by Lam Seng Fatt