December 5, 2018 / 4:16 AM / 14 days ago

SE Asia Stocks-Fall on flattening US yield curve, trade worries

    * Philippines, Singapore top losers
    * Thailand closed for holiday

    By Shreya Mariam Job
    Dec 5 (Reuters) - Southeast Asian stocks fell on Wednesday,
in line with global markets, as a flattening U.S. treasury yield
curve stoked recession fears and rising uncertainty around the
U.S.-China trade talks brought global slowdown concerns to the
fore.
    Benchmark 10-year U.S. Treasury yield fell to its lowest
point since mid-September. The spread between the 10-year yield
over its two-year counterpart also shrank to the smallest since
the start of the financial crisis in January 2008, signalling to
some investors an approaching U.S. economic slowdown.

    Investors were also worried a trade deal between the world's
two biggest economies was far from a sure bet after Washington
and Beijing agreed to temporarily end their trade war during
talks at the G20 summit in Argentina.
    MSCI's broadest index of Asia-Pacific shares outside Japan
 fell 1.35 percent.
    "Questions on trade, worries about U.S. growth and perceived
dovishness on the Fed all play a part in explaining these market
moves. Concerns were also compounded by increasing news
narrative on inverted curves and risks of a recession," DBS Bank
Ltd's rates strategist Eugene Leow and economist Radhika Rao
said in a note.
    Philippine stocks fell 2 percent before cutting some
of the losses on data showing inflation eased in November.
    "In terms of inflation, we saw it on a positive note. We're
expecting somewhat for the index to at least recover," said
Rachelle Cruz, a research analyst with Manila-based AP
Securities.
    Annual inflation slowed to a four-month low in November,
easing pressure on the central bank to raise interest rates
further with some analysts predicting a rate cut as early as
next year if the inflationary pressures continue to ease.

    Persistent price pressures have curbed demand and had
prompted the government to cut its economic growth target for
this year in October.
    Industrials and financials were the top losers, with SM
Investments Corp dipping 2.3 percent and SM Prime
Holdings Inc weakening 1.9 percent. 
    Singapore stocks extended losses into a second
session, shedding as much as 1.3 percent.
    Technology and utility stocks were the biggest losers with
Jardine Strategic Holdings Ltd dropping 1.8 percent and
DBS Group Holdings Ltd declining 1.7 percent.
    Malaysian stocks fell 0.6 percent, dragged by
telecommunication services and utility stocks, while Indonesian
shares declined on financials and consumer
discretionaries.    
    Malaysia posted its largest trade surplus in October, with
total exports surging 17.7 percent from a year earlier, beating
estimates of a 6.2 percent rise.
    Financial and consumer staples stocks pulled down Vietnam
shares, with Masan Group Corp and Vietnam Dairy
Products JSC dropping 0.7 percent and 1.2 percent,
respectively.
    The Thai stock market was closed for a holiday.
         
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS: As at 4:04 GMT
    
 Market          Current   Previous close  Pct Move
 Singapore       3133.88   3167.79         -1.07
 Manila          7598.08   7703.92         -1.37
 Jakarta         6118.979  6152.86         -0.55
 Kuala Lumpur    1685.05   1694.99         -0.59
 Ho Chi Minh     955.24    958.84          -0.38
                                           
 Change on year                            
 Market          Current   End prev yr     Pct Move
 Singapore       3133.88   3402.92         -7.91
 Manila          7598.08   8,558.42        -11.22
 Jakarta         6118.979  6,355.65        -3.72
 Kuala Lumpur    1685.05   1796.81         -6.22
 Ho Chi Minh     955.24    984.24          -2.95
 

 (Reporting by Shreya Mariam Job in Bengaluru; Editing by
Subhranshu Sahu)
  
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