Southeast Asian stock markets mostly ended higher on Wednesday, led by banks on strong volumes on hopes China would maintain its fine-tuning of policies next year to ensure stable economic growth. However, the optimism was slightly offset by concerns over US lawmakers' ability to break a budget impasse before year-end to avert a possible economic slump.

Singapore added 0.5 percent, led by banking stocks with 1.9 percent rise in United Overseas Bank Ltd and 0.8 percent gain in DBS Group Holdings Ltd. Indonesia, despite suffering a $57.7 million foreign outflow, added 0.4 percent, recovering from a two-month low, due to strong local buying. Bank Central Asia Tbk PT gained 0.57 percent, while Bank Mandiri Persero Tbk PT rose 0.61 percent.

Malaysia added 0.4 percent with $21.23 million net foreign inflow and Vietnam rose 0.9 percent to a near three-week high. The Philippines, the region's best performer this year, bucked the trend with snapping a seven-session gaining streak and fell 0.3 percent from its record high. Thailand was closed for a public holiday.

Copyright Reuters, 2012