By Shruti Sonal
Jan 3 (Reuters) - Most Southeast Asian stock markets extended gains on Friday after Wall Street notched another record high on China's policy easing move and a private survey showing solid production growth in the world's second-largest economy.
Broader Asian shares .MIAPJ0000PUS pared early gains after news of U.S. air strikes in Iraq, but markets in Southeast Asia remained relatively steady.
"Investors appear to bet that the initial caution will pass, preferring to focus on the broader global recovery story," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
A survey on Thursday showed Chinese production activity in December continued to grow and business confidence strengthened, indicating a recovery in the economy in the wake of a Phase 1 trade deal with the United States.
The Chinese central bank said on Wednesday it was cutting the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in funds to shore up the slowing economy.
Philippine shares .PSI climbed nearly 1% after a more than 2% drop on Thursday, helped by industrial and consumer stocks.
Port operator International Container Terminal Services Inc ICT.PS and beverage products maker Universal Robina Corp URC.PS were the top percentage gainers on the benchmark index.
Malaysian equities .KLSE rose 0.5%, helped by healthcare and basic material stocks. IHH Healthcare Bhd IHHH.KL and Press Metal Aluminium Holdings Bhd PMET.KL gained 2.2% and 1.7%, respectively.
Meanwhile, data showed exports dropped for the fourth straight month in November, contracting 5.5% from a year earlier on lower shipments of manufactured goods and commodities.
Energy stocks helped Thailand shares .SETI rise to their highest since Nov. 28 on the back of higher oil prices after U.S. air strikes killed Iran and Iraq officials. O/R
Oil and gas giant PTT Pcl PTT.BK advanced 2.2%, while Star Petroleum Refining Pcl SPRC.BK rose over 3.6%.
Singapore stocks .STI fell 0.5%, dragged by financials.
DBS Group Holdings DBSM.SI slid as much as 1% after China's Ant Financial, an affiliate of Alibaba Group Holdings BABA.N, said on Thursday it had joined the race for a digital banking licence in the city state.
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0336 GMT
Change on the day
Ho Chi Minh
Change so far in 2020
Ho Chi Minh
1 = 4.1000 ringgit)
(Editing by Subhranshu Sahu)
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