BANGKOK: Thai stocks edged higher on Tuesday as large-caps and banking shares regained lost ground while shares in Indonesia and the Philippines eased amid currency weaknesses.

The Thai SET index was up 0.7 per cent at 1,238.94, led by a 2.8 per cent gain in Airports of Thailand while Krung Thai Bank rose 1.3 per cent on expectations the state-run bank would report strong quarterly earnings.

Strategists at broker Phillip Securities expect selective buying in beaten-down, high dividend yielding stocks to lift the benchmark to 1,250 later in the day, although domestic political factors still bear a close watch.

"There is scope for a short-term rebound in Thai stocks today after the pace of foreign buying picked up significantly... though domestic political pressure would continue to weigh on the market in the long term," they wrote in a report.

Anti-government protesters have planned a mass shutdown of the capital on January 13, calling for a reform of the political system to precede the election.

The Thai stock market saw foreign inflows for a third session on Monday, helping the benchmark bounce off a 16-month closing low hit last week.

Indonesia's main index fell 0.4 per cent to 4,187.87, having hit a two-week low of 4,185.45. Agricultural stocks fell 2.7 per cent and mining shares eased 0.7 per cent amid concerns over the impact of the rupiah's weakness on earnings.

The Philippine key index was down 0.5 per cent at 5,955.12, weighed down by profit-taking in shares such as Philippine Long Distance Telephone, with a weak peso keeping players cautious of foreign selling.

The market noted net foreign selling of US$11.2 million on Monday amid the peso's weakness.

The Philippine central bank is prepared to intervene in the foreign exchange market to smoothen excessive swings, its governor said on Tuesday, as the peso hovered near 4-month lows.

Stocks in Singapore and Malaysia edged slightly higher as Asian shares stabilised after four straight days of losses.

Vietnam rose 0.6 per cent after the government said a strategic foreign investor will be allowed to own a maximum 20 per cent of a Vietnamese bank from late next month, from 15 per cent now.-- Reuters