Most Southeast Asian stock markets rose on Thursday, with Singapore posting its highest close in 21 months, while Thailand extended its decline into a fourth session to hit its lowest close in nearly two months. The FTSE Straits Times Index closed up 0.7 percent, aided by solid gains in top banks. DBS Group Holdings rose 2 percent, Oversea-Chinese Banking Corp Ltd climbed 1 percent, and United Overseas Bank Ltd gained 1.8 percent, with all three hitting their highest in about two years.

"The striking thing about the Q1 results is that across all three banks the NPL (non-performing loan) ratio has stabilised consistently and the specific provision has dropped by 30-50 percent quarter-on-quarter," said Jonathan Koh, a research analyst with UOB Kay Hian Pte Ltd.

"They are also giving positive feedback that the worst of NPL formation from the oil and gas sector will be easing." Malaysian shares ended 0.5 percent higher, lifted by utility stocks. Petronas Gas Bhd and hospitality services provider Genting Malaysia Bhd were the biggest gainers. In Malaysia, the world's second largest producer of the tropical oil, palm oil inventories at the end of April rose 3 percent on month to their highest in 2017.

Philippine shares snapped two days of losses, closing 0.3 percent higher. The Philippine central bank kept its inflation forecasts for this year and 2018 unchanged with average inflation for 2017 expected at 3.4 percent. In March, exports and imports picked up, with imports rising 24 percent from a year earlier and exports up 21 percent. Thai shares fell 0.6 percent, dragged down by materials. Energy Earth Public Co Ltd and Triton Holding Public Co Ltd were the biggest losers. Sri Trang Agro Industry Pcl slumped 4.7 percent as the world's biggest natural rubber producing company cut its 2017 sales guidance to between 1.3 million and 1.7 million tonnes from 1.7 million tonnes. Indonesia was closed for a national holiday.

Copyright Reuters, 2017