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SE Asia Stocks-Largely down after Fed signals more rate hikes
December 15, 2016 / 5:18 AM / a year ago

SE Asia Stocks-Largely down after Fed signals more rate hikes

By Anusha Ravindranath
    Dec 15 (Reuters) - Most Southeast Asian stock markets fell
in heavy selloff on Thursday after the U.S. Federal Reserve
hinted at a faster pace of tightening next year.
    Although the central bank raised interest rate by a quarter
point as widely expected, investors had bet on a more dovish
message in terms of its outlook and were unnerved when it hinted
at three hikes in 2017, up from the earlier forecast of two.
 
    "The rate hike itself was not a big shock," said Taye Shim,
head of research at Daewoo Securities Indonesia. "The markets
were already pricing in the hike." 
    "If the fiscal policies are to be implemented aggressively
by (President-elect) Donald Trump, they (Fed) believe that the
pace of the rate hike could be faster, which we think can be
worrisome."
    The Fed decision sent the greenback soaring to its highest
in nearly 14 years, while Asian shares and currencies struggled.
 
    Elsewhere, crude oil prices fell as the Fed rate call drove
money away from commodities and into U.S. bonds and the dollar.
 
    Singapore shares fell as much as 1.1 percent in their
biggest percentage fall in a month. Telecom and banking stocks
were the major losers with StarHub Ltd being the worst
performer, dropping as much as 4.5 percent.
    Telecom stocks took a hit after the regulator announced the
entry of Australian company TPG Telecom's unit, paving
way for more competition. The benchmark telecommunications index
 shed more than 1 percent, with Singapore
Telecommunications Ltd hitting a three-week low. 
    Philippine stocks dropped as much as 1.3 percent,
dragged down by financial and industrial stocks. Conglomerate SM
Prime Holdings Inc fell as much as 3.5 percent to a
one-week low. 
    Indonesian shares fell to their lowest in nearly two
weeks with financial and consumer stocks accounting for most of
the losses.
    Malaysian shares posted their biggest intraday fall
in a month, hurt by energy and material stocks. Sapurakencana
Petroleum Bhd was among the top losers, shedding as
much as 3.7 percent.
    Bucking the trend, Vietnam shares rose to a two-week
high.  
    
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS: Change at 0439 GMT
  Market          Current      previous    Pct Move
                               close       
  Singapore       2931.56      2954.06     -0.76
  Bangkok         1521.34      1521.25     0.01
  Manila          6853.86      6928.34     -1.08
  Jakarta         5256.524     5262.817    -0.12
  Kuala Lumpur    1636.26      1643.29     -0.43
  Ho Chi Minh     667.41       665.14      0.34
                                           
  Change on year                           
  Market          Current      End 2015    Pct Move
  Singapore       2931.56      2882.73     1.69
  Bangkok         1521.34      1288.02     18.11
  Manila          6853.86      6952.08     -1.41
  Jakarta         5256.524     4593.008    14.45
  Kuala Lumpur    1636.26      1692.51     -3.32
  Ho Chi Minh     667.41       579.03      15.26
 
 (Reporting by Anusha Ravindranath in Bengaluru; Editing by
Subhranshu Sahu)

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