February 5, 2018 / 10:14 AM / a year ago

SE Asia Stocks-Tumble as rising U.S. yields choke risk appetite; Vietnam worst hit

    * Philippines down 2.2 pct, biggest fall since Nov 2016
    * Vietnam down 5 percent at lowest close since Aug 2015
    * Asian shares ex-Japan see worst fall since late 2016

    By Nikhil Nainan
    Feb 5 (Reuters) - Southeast Asian stock markets plunged on
Monday as rising U.S. bond yields on worries over the prospect
of higher interest rates rattled equity investors, with Vietnam
shedding five percent to record its steepest fall in nearly
two-and-a-half years.
    Asian shares fell their most in over a year after fears of
resurgent inflation toppled Wall Street on Friday from all-time
    MSCI's broadest index of Asia-Pacific shares outside Japan
 dropped as much as 2 percent, extending losses
into a third straight session. 
    “There is a cautious mood currently because of the sudden
surge in yields, so I think markets are trying to adapt to this
changing environment of changing yields and expectations of
higher inflation going forward,” said Joel Ng, a research
analyst at KGI Securities in Singapore.
    Global bond yields have been rising on expectations of
improving global growth, which has investors worried about the
impact of rising borrowing costs on consumers and companies.

    Shares in Singapore closed 1.3 percent lower as
financial stocks dragged the index lower. 
    Top lenders Oversea-Chinese Banking Corp and DBS
Group Holdings suffered their worst session in over a
month, while United Overseas Bank fell to a four-week
    Although higher interest rates tend to bode well for
lenders, a sudden or much faster rise in yields will cause some
problems in the equity markets, Ng added.
    Indonesian shares recouped part of their early
losses after data showed the economy grew at its fastest pace in
four years in October-December. 
    Consumer stocks weighed heavy on the index, with Astra
International Tbk PT falling as much as 2.9 percent.
Unilever Indonesia Tbk PT closed 1.1 percent lower.
    Philippine shares closed 2.2 percent lower as
heavyweights SM Prime Holdings and SM Investment
 witnessed selling pressure. 
    Vietnamese shares plummeted 5 percent on Monday,
marking their worst day since Aug 2015.
    Thai and Malaysian shares closed around one
percent lower. 
For Asian Companies click;  

 Change on the day                            
 Market             Current   Previous close  Pct Move
 Singapore          3482.93   3529.82         -1.33
 Bangkok            1810.32   1827.35         -0.93
 Manila             8616      8810.75         -2.21
 Jakarta            6589.675  6628.82         -0.59
 Kuala Lumpur       1853.07   1870.48         -0.93
 Ho Chi Minh        1048.71   1105.04         -5.10
 Change on year                               
 Market             Current   End 2017        Pct Move
 Singapore          3482.93   3402.92         2.35
 Bangkok            1810.32   1753.71         3.23
 Manila             8616      8558.42         0.67
 Jakarta            6589.675  6355.654        3.68
 Kuala Lumpur       1853.07   1796.81         3.13
 Ho Chi Minh        1048.71   984.24          6.55

 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Vyas Mohan)
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