August 2, 2019 / 3:55 AM / 3 months ago

SE Asia Stocks-Fall as Trump's China tariff threat rattles market

    * Thailand hits six-week low, down for second session 
    * Singapore near 2-month low ahead of business activity data

    By Anushka Trivedi
    Aug 2 (Reuters) - Southeast Asian stock markets fell on
Friday after U.S. President Donald Trump proposed a 10% tariff
on remaining $300 billion worth of Chinese imports from next
month, intensifying the year-long trade war between the world's
two largest economies.
    If implemented, this move would extend trade duties to
nearly all of China's exports to the United States and mark a
sudden end to a temporary truce in the trade row that has
hampered world growth and disrupted global supply chains.
    "Markets are reeling after Trump expressed his frustration
with China's stalling techniques... If there was any doubt that
the U.S.-China trade negotiations are drifting further apart, 
this latest trade escalation puts that debate to rest," said
Stephen Innes, managing partner at VM Markets Pte.
    Trump's surprise announcement comes hot on the heels of
two-day trade talks in Shanghai that ended without any
significant progress.
    Thai stocks fell 1.3% to six-week lows, extending
losses into a second session, as a plunge in oil prices
overnight pressured energy players.
    Oil and gas major PTT Exploration and Production PCL
 slumped 4.1%.
    Philippine shares stumbled 1.1%, hit by losses in
financial and real estate stocks.
    Property developer SM Prime Holdings Inc and
lender BDO Unibank Inc slipped 2.5% and 1%,
respectively.
    Singapore shares slipped for a third straight session
and hit their lowest in nearly two months, ahead of July
business activity data.  
    The data is expected to disappoint as the electronic hub
battles a global tech slump and the repercussions of the
U.S.-China trade tiff, according to a note from ING.
    In other news, lender Oversea-Chinese Banking Corp Ltd
 reported steady second-quarter earnings, while profit
jumped at rival United Overseas Bank Ltd with improved
margins and loan growth providing support in a slowing economy.

    Analysts, however, expect Singapore banks' performance to
weaken as a decline in interest rates and a faltering economy
put pressure on the sector's profit and revenue growth after
three strong years. 

For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS AS AT 0348 GMT
 Market                 Current   Previous close  Pct Move
 Singapore              3271.21   3291.75         -0.62
 Bangkok                1676.92   1699.75         -1.34
 Manila                 8017.84   8098.16         -0.99
 Jakarta                6330.305  6381.542        -0.80
 Kuala Lumpur           1626.52   1639.07         -0.77
 Ho Chi Minh            986.69    997.39          -1.07
                                                  
 Change so far in 2019                            
 Market                 Current   End 2018        Pct Move
 Singapore              3271.21   3068.76         6.60
 Bangkok                1676.92   1563.88         7.23
 Manila                 8017.84   7,466.02        7.39
 Jakarta                6330.305  6,194.50        2.19
 Kuala Lumpur           1626.52   1690.58         -3.79
 Ho Chi Minh            986.69    892.54          10.55
 
 (Reporting by Anushka Trivedi in Bengaluru; Editing by
Subhranshu Sahu)
  
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