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Soumyajit Saha

SE Asia Stocks-Rise on Sino-U.S. trade talk optimism

30 Aug 2019

* Philippines gains to near 1-month closing high * Malaysia posts three-week closing high * Thai July exports rise, current account surplus narrows By Soumyajit Saha Aug 30 Southeast Asian stock markets rose on Friday as signs that the United States and China are planning to resume trade talks boosted risk appetite. Both countries struck a reconciliatory note as news of trade talks scheduled for September emerged on Thursday, while U.S. President Donald Trump said he had calls with Chinese officials planned later that day. China's foreign ministry though put the onus on the United States to create favourable conditions for the talks, adding that it hoped the latter would cancel the tariffs slated to kick-off in two days. "Markets anticipate the latest tariffs escalation to take a pause despite little concrete progress being expected" before the negotiations begin, Mizuho Bank said in a note to clients. Philippine stocks advanced to their highest close in nearly a month, helped by heavyweights such as SM Prime Holdings and BDO Unibank. The index rose 1.1% over the week. Chinese Premier Xi Jinping said on Thursday his country and the Philippines could work towards the joint development of oil and gas resources in the South China Sea if they can properly handle their dispute over sovereignty. The comment came during a visit to Beijing by Philippine President Rodrigo Duterte, amid a recent rise in tension on several fronts, with Chinese vessels challenging energy assets and the sea boundaries of Malaysia, Vietnam and the Philippines. Banking stocks helped Malaysia's benchmark index rise to its highest close in nearly three weeks. The index gained 0.2% for the week, but fell 1.4% during the month. Malayan Banking Bhd and CIMB Group Holdings Bhd gained 1.35% and 1.8%, respectively. Malaysia's top two lenders on Thursday said they expected a quarter point interest rate cut by the central bank this year. Energy and banking stocks helped Thailand's benchmark index close at its highest in over three weeks. However, the index lost 3.4% this month. Exports rose 3.8% in July from a year earlier after falling 2.1% in June, but the current account surplus narrowed to $1.77 billion after June's surplus of $3.92 billion. Indonesian shares advanced 1.2% over the week, but fell 1% during the month. An index of Indonesia's 45 most liquid stocks was up 1.4% on Friday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3106.52 3081.83 0.80 Bangkok 1654.92 1639.14 0.96 Manila 7979.66 7892.81 1.10 Jakarta 6328.47 6289.119 0.63 Kuala Lumpur 1612.14 1595.18 1.06 Ho Chi Minh 984.06 978.59 0.56 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3106.52 3068.76 1.23 Bangkok 1654.92 1563.88 5.82 Manila 7979.66 7,466.02 6.88 Jakarta 6328.47 6,194.50 2.16 Kuala Lumpur 1612.14 1690.58 -4.64 Ho Chi Minh 984.06 892.54 10.25 (Reporting by Soumyajit Saha; Editing by Subhranshu Sahu)

SE Asia Stocks-Gain on fresh signs of Sino-U.S. trade discussions

30 Aug 2019

* Singapore marks biggest intraday pct gain in 2 months * Philippines touches its highest in nearly 3 weeks * Meetings on trade negotiation planned for Sept By Soumyajit Saha Aug 30 Southeast Asian stock markets rose on Friday, with Singapore leading the gains, tracking a global upturn, as markets cheered signs of fresh trade negotiations between Washington and Beijing. Risk sentiment got a boost after U.S. President Donald Trump announced on Thursday scheduled calls with China, ahead of a looming deadline for additional U.S. tariffs. The announcement comes after China said a round of meetings was planned for September. China though said progress in the talks would hinge on the United States "creating" favourable conditions, adding that it hoped Washington would cancel some of the tariffs set to kick in on Sunday. "An olive branch from China, but we don't think China is about to acquiesce without the U.S. removing a lot of existing tariffs and holding off from new ones," said Robert Carnell, Head of Research, Asia-Pacific at ING Group. Investors were also focused on a string of economic releases due over the weekend including China's official manufacturing survey, which would provide a good gauge of the real impact from the Sino-U.S. trade war. "U.S. public opinion would not welcome a weak trade deal with China as much as they would not welcome a slowing economy," Robert explained, adding, "so yes, markets are happy today as a goldfish is with a new rock in the tank to swim around, and around, and around." Singapore shares saw their best session in nearly two months, as index heavyweights DBS Group Holdings and Jardine Matheson Holdings advanced 1.2% and 1.8%, respectively. Thai shares touched their highest in almost three weeks, ahead of the country's July trade balance data due later in the day. Exports in Thailand declined on a year-on-year basis in June, while trade surplus had climbed from May. The benchmark index, lifted by the energy and financial sectors, saw lender Kasikornbank PCL posting gains of 1.3%, while oil explorer and distributor PTT PCL climbed 1.2% Real estate stocks helped the Philippine benchmark index touch its highest in about three weeks, with SM Prime Holdings gaining up to 1.4%, while Ayala Corp rose 0.5%. Indonesian stocks extended gains into a fourth session, underpinned by the banking sector. Bank Mandiri (Persero) and Bank Central Asia rose 1.5% and 0.7%, respectively. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 03:42 GMT STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3105.55 3081.83 0.77 Bangkok 1651.03 1639.14 0.73 Manila 7949.51 7892.81 0.72 Jakarta 6311.981 6289.119 0.36 Kuala Lumpur 1603.42 1595.18 0.52 Ho Chi Minh 983.04 978.59 0.45 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3105.55 3068.76 1.20 Bangkok 1651.03 1563.88 5.57 Manila 7949.51 7,466.02 6.48 Jakarta 6311.981 6,194.50 1.90 Kuala Lumpur 1603.42 1690.58 -5.16 Ho Chi Minh 983.04 892.54 10.14 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)

SE Asia Stocks-Rise as China comment lifts sentiment

29 Aug 2019

* Possibility of govt stimulus helps Thailand * Singapore posts 1-week closing high * Philippines rises on utility, industrial stocks By Soumyajit Saha Aug 29 Southeast Asian stock markets closed higher on Thursday, with Thailand leading the gains, as China's comment it is discussing the next round of trade talks with Washington lifted investor mood. China's commerce ministry struck a conciliatory note and called for the creation of favourable conditions for trade talks, adding that Beijing was hopeful the United States would cancel some of the proposed tariffs. "There has been a lot of negativity in the market recently, so this development (China's comments) will definitely be seen as a positive sign," said Joel Ng, an equity research analyst with KGI Securities. Thai shares gained 1.4%, helped by financial and energy stocks. Oil and gas explorer PTT Pcl rose 5.5% after a Bloomberg report that the company was exploring partnerships with countries in the Middle East to help meet the country's energy demand, while lender Kasikornbank gained 1.6%. "Today's positivity is also partly from the possibility of more government stimulus, or at least of a cushion against the downsides coming our way, based on yesterday's headlines," said Maria Lapiz, managing director of institutional research at Maybank Kim Eng. The finance ministry has enough fiscal space available for additional stimulus measures if needed, the Bangkok Post quoted the finance minister as saying. "It is also the second day of the Thailand Focus meet, so I'm speculating some positivity from that too," Maria said. Banking and industrial stocks helped Singapore's benchmark index close at its highest in a week. Lender United Overseas Bank gained 1.5%, while conglomerate Jardine Matheson Holdings advanced 1.1%. "The dividend yield levels for some of the big banks are encouraging investors to come in," Joel said. Philippine stocks climbed 0.6%, helped by the utility and industrial sectors, after rallying over 1% on Wednesday. Indonesian stocks edged higher, aided by the resources and financial sectors. After market hours, the finance minister revised down the economic growth outlook for 2019 to 5.08% from 5.2%. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3081.83 3056.47 0.83 Bangkok 1639.14 1616.93 1.37 Manila 7892.81 7847.5 0.58 Jakarta 6289.119 6281.646 0.12 Kuala Lumpur 1595.18 1589.82 0.34 Ho Chi Minh 978.59 977.26 0.14 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3081.83 3068.76 0.43 Bangkok 1639.14 1563.88 4.81 Manila 7892.81 7,466.02 5.72 Jakarta 6289.119 6,194.50 1.53 Kuala Lumpur 1595.18 1690.58 -5.64 Ho Chi Minh 978.59 892.54 9.64 (Reporting by Soumyajit Saha; Editing by Subhranshu Sahu)

SE Asia Stocks-Most trade flat to lower; global outlook stokes risk-off mode

29 Aug 2019

* Energy sector lifts Thai index * Philippines falls ahead of Duterte's talks with China * Singapore index touches a nearly 8-month low By Soumyajit Saha Aug 29 Most Southeast Asian stock markets traded flat to lower on Thursday as the Sino-U.S. friction and a gloomy global outlook stirred a risk-off sentiment, with Philippine leading declines. Bond markets around the world painted a gloomier picture, with yields on 30-year U.S. Treasuries and 10-year German bunds yield both hitting record lows on Wednesday. Inversion remains a prominent feature across the U.S. yield curve, where long-dated yields are below short-dated ones, an unsettling sign as yield curve inversions have been a reliable leading indicator of future U.S. recessions. Hitting market sentiment further, Washington made its extra 5% tariff on $300 billion in Chinese imports official on Wednesday and set collection dates of Sept. 1 and Dec. 15, prompting hundreds of U.S. retail, footwear, toy and technology companies to warn of price hikes. The lack of further developments in the Sino-U.S. trade dispute was also restricting movement in Southeast Asian stock markets, said Richard Laneda, research analyst, COL Financial. The Philippine index retreated from previous session's rally to lead losses in the region, ahead of President Rodrigo Duterte's talks with China this week. The trip comes amid a recent rise in tension on multiple fronts, with Chinese vessels challenging energy assets and sea boundaries of Malaysia, Vietnam and the Philippines, prompting warnings and rebukes by the United States. Telecom and real estate stocks dragged Singapore's benchmark index to its lowest since Jan. 4. Singapore Telecommunications dropped 1%, while real estate developer Hongkong Land Holdings lost 0.6%. A downturn in the U.S. stock futures hurt the city-state's markets, while near-term challenges faced by index heavyweight Singapore Telecommunications in its overseas investments also weighed, said Nicholas Yon, research analyst, Lim & Tan Securities. Bucking the sombre mood, Thai stocks advanced, helped by gains in the energy sector as oil prices surged overnight. Oil and gas explorers PTT PCL and PTT Exploration and Production rose 1.8% and 0.6% respectively. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3057.86 3056.47 0.05 Bangkok 1624.23 1616.93 0.45 Manila 7819.8 7847.5 -0.35 Jakarta 6288.458 6281.646 0.11 Kuala Lumpur 1587.53 1589.82 -0.14 Ho Chi Minh 974.37 977.26 -0.30 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3057.86 3068.76 -0.36 Bangkok 1624.23 1563.88 3.86 Manila 7819.8 7,466.02 4.74 Jakarta 6288.458 6,194.50 1.52 Kuala Lumpur 1587.53 1690.58 -6.10 Ho Chi Minh 974.37 892.54 9.17 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)

SE Asia Stocks-Philippines recovers on property stocks; others tepid

28 Aug 2019

* Energy stocks help Thailand rise * Singapore falls on telecom, consumer stocks By Soumyajit Saha Aug 28 Philippine stocks rose over 1% on Wednesday, recovering from the previous session's sharp fall on hopes of positive news from President Rodrigo Duterte's visit to China, while other Southeast Asian markets were tepid amid lingering trade war worries. The benchmark Manila stock index closed 1.3% higher, helped the real estate sector. It had declined 1.8% on Tuesday amid fears the government may halt online gambling operations. The market benefited from expectations of positive developments regarding China's call for a ban on online gaming companies in the Philippines, during Duterte's visit to Beijing, said Rachelle Cruz, a research analyst with AP Securities. Offshore gaming operations, or POGOs, have benefited the Philippine economy immensely, boosting property demand and retail spending. Meanwhile, other Southeast Asian markets traded in a tight range as a trade dispute between the United States and China drags on. Beijing on Tuesday denied there had been any recent phone calls with U.S. officials, effectively refuting Washington's earlier claim that there had been contact. China's top trade negotiator, Liu He, though had said on Monday that his country was looking for "calm" negotiations to resolve the dispute. Market participants "seemed to be getting tired of the volatility caused by trade-related headlines", said Liu Jinshu, director of research at Singapore-based Tayrona Financial Pte Ltd. The outlook is pretty mixed as the market seems to be waiting out the implementation of tariffs in September or further action from the U.S. Federal Reserve before making moves, Liu added. Trading volumes were also low as a deepening inversion of the U.S. bond yield curve a day earlier stoked fears of a recession. Thai stocks rose slightly, helped most by the energy sector. Gas explorer and distributor PTT PCL advanced 0.6%, while PTT Exploration and Production PCL gained 1.3%. Optimism from the Thailand Focus investor summit helped markets while the energy sector benefited from an upturn in oil prices, said Teerada Charnyinyong, an investment strategist with Phillip Capital Thailand. Telecom and consumer stocks dragged Singapore's benchmark index down slightly. Singapore Telecommunications lost 1.6%, while conglomerate Jardine Cycle & Carriage was down 1.9%. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3056.47 3067.52 -0.36 Bangkok 1616.93 1615.47 0.09 Manila 7847.5 7747.38 1.29 Jakarta 6281.646 6278.171 0.06 Kuala Lumpur 1589.82 1590.84 -0.06 Ho Chi Minh 977.26 976.79 0.05 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3056.47 3068.76 -0.40 Bangkok 1616.93 1563.88 3.39 Manila 7847.5 7,466.02 5.11 Jakarta 6281.646 6,194.50 1.41 Kuala Lumpur 1589.82 1690.58 -5.96 Ho Chi Minh 977.26 892.54 9.49 (Reporting by Soumyajit Saha; Editing by Subhranshu Sahu)

SE Asia Stocks-Subdued as traders seek clarity on Sino-U.S. trade war

28 Aug 2019

* Vietnam snaps three sessions of losses * Energy and banking stocks lift Thai index * Inversion of U.S. yield curve stokes recession fears By Soumyajit Saha Aug 28 Southeast Asian stock markets traded in a tight range on Wednesday as deeper worries about global economy dampened sentiment, while investors sought further clarity on the developments in the Sino-U.S. trade dispute. Trading volumes were a fraction of their monthly average after an deepening inversion in the U.S. yield curve sent market participants dashing for safe-haven assets such as gold and stoked fears of a recession. The U.S. yield curve inversion, a portent for several past U.S. recessions, sent Wall Street stocks tumbling down on Tuesday. "The suggestion (of a recession) is not outlandish," Mizuho Bank said in a note to clients. "After all, the U.S.-China trade conflict resolution prospects have dimmed and resultant recession risks have risen significantly after China's MoF openly called out Trump; exceptionally antagonistic for the China-U.S. engagement," the note added. China's foreign ministry on Tuesday denied any recent phone calls with U.S. officials, effectively refuting Washington's claim that there had been contact. Thai stocks recovered from previous session's losses, helped by gains in the energy and financial sector. Gas explorer and distributor PTT PCL was up 1.2%, while lender Kasikornbank advanced 1.9%. The energy sector was lifted by higher oil prices after an inventory report showed U.S. stockpiles fell more than expected, helping ease worries about economic slowdown. Indonesian shares lost momentum on Wednesday after the index rallied 1% in the previous session to close at a one-week high. Sentiment got a lift as gains in financial and consumer sectors helped the Vietnam index snap three sessions of losses. Heavyweights Joint Stock Commercial Bank for Foreign Trade of Viet Nam jumped 1%, while beverage maker Saigon Beer Alcohol Beverage Corp rose 1.3%. Malaysian shares were flat after hitting their lowest close in four years in the previous session, while trading in the Philippine benchmark index was subdued. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 04:33 GMT STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3071.79 3067.52 0.14 Bangkok 1617.84 1615.47 0.15 Manila 7752.61 7747.38 0.07 Jakarta 6288.971 6278.171 0.17 Kuala Lumpur 1589.47 1590.84 -0.09 Ho Chi Minh 977.99 976.79 0.12 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3071.79 3068.76 0.10 Bangkok 1617.84 1563.88 3.45 Manila 7752.61 7,466.02 3.84 Jakarta 6288.971 6,194.50 1.53 Kuala Lumpur 1589.47 1690.58 -5.98 Ho Chi Minh 977.99 892.54 9.57 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)

SE Asia Stocks-Philippines slumps to 3-month lows on property stocks

27 Aug 2019

* Indonesia gains 1% to one-week closing high * Malaysia marks lowest close in nearly 4 years * Telecom, financial sectors weigh on Thailand By Soumyajit Saha Aug 27 Philippine stocks plunged nearly 2% on Tuesday to three-month closing lows, dragged by property stocks on fears the government may halt online gambling, while Indonesian shares rose on optimism about government stimulus. The archipelago's anti-money laundering body said it was scrutinizing the country's online gambling industry to determine the impact on the economy if it stopped operating. China has urged the Philippines to ban online gaming to support its crackdown on cross-border gambling. Online gambling companies are a boon for the local economy, drawing many visitors from China who work in them, fuelling property demand and retail spending. Lack of positive catalysts coupled with negative sentiments in the property sector after China's urge to ban online gambling hurt risk appetite, said Rachelle Cruz, a research analyst with AP Securities. The benchmark stock index closed 1.8% lower, with Ayala Land and Ayala Corp shedding 3.4% and 1.9% respectively. Indonesian shares gained 1% to a one-week closing high, helped by financial and consumer sectors. Risk sentiment was boosted as the government's decision to relocate the capital city from Jakarta solidified confidence that it would walk the talk on stimulus proposed in the 2020 budget draft, said Andrey Wijaya, a senior analyst at RHB Sekuritas Indonesia. Ten days after unveiling a $177.71 billion budget for 2020, the government said it would relocate the capital to the island of Borneo and it would cost about $32.79 billion. The government also promised to focus on investments in infrastructure, human resources and social security. Among gainers, Unilever Indonesia and lender Bank Rakyat Indonesia (Persero) added 3.1% and 3.2%, respectively. Thai shares closed about 0.5% lower, weighed down by telecoms and financials. True Corp fell 2.4%, while Kasikornbank PCL lost 1.9%. Thailand's manufacturing production index in July dropped 3.23% from a year earlier, a greater fall than expected, dragged down by lower production of cars, petroleum and steel. Malaysian shares fell to their lowest close in nearly four years, hurt by losses in financials. Lender Hong Leong Bank and financial services provider Hong Leong Financial Group lost 2.9% and 4.4%, respectively. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3067.52 3065.33 0.07 Bangkok 1615.47 1622.73 -0.45 Manila 7747.38 7889.41 -1.80 Jakarta 6278.171 6214.51 1.02 Kuala Lumpur 1590.84 1600.53 -0.61 Ho Chi Minh 976.79 982.88 -0.62 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3067.52 3068.76 -0.04 Bangkok 1615.47 1563.88 3.30 Manila 7747.38 7,466.02 3.77 Jakarta 6278.171 6,194.50 1.35 Kuala Lumpur 1590.84 1690.58 -5.90 Ho Chi Minh 976.79 892.54 9.44 (Reporting by Soumyajit Saha; Editing by Subhranshu Sahu)

SE Asia Stocks-Most gain on trade truce hopes; Philippines drops

27 Aug 2019

* Donald Trump signalled a possible reconciliation with China * Philippines touches a nearly two-week low * Industrial stocks help Singapore index gain By Soumyajit Saha Aug 27 Most Southeast Asian stocks edged higher on Tuesday as Washington and Beijing struck a conciliatory tone, calming markets that roiled after a fresh round of trade tariffs, while Philippines dropped in catch-up trade. Supporting the market mood, U.S. President Donald Trump on Monday hailed positive gestures from China as signs of an imminent trade deal. China's top trade negotiator and Vice Premier Liu He also called for "calm" negotiations to resolve the dispute. Indonesian stocks recovered from previous session's losses to touch a nearly two-week high, underpinned by financials. Lender Bank Rakyat Indonesia (Persero) rose 1.2%, while investment holding Sinar Mas Multiartha surged as much as 19.9%. Equity markets may have found traction for now but the longer-term outlook for risk assets, buffeted repeatedly by trade concerns, remained shaky. "Whether to hang on or hang up, on the breath of relief (more than optimism) from the "call" may be irrelevant once the next Twitter feed comes through," Mizuho Bank said in a note to clients. "The bigger picture is that deep-seated issues are unlikely to be resolved on the flick of a switch or tweet," the note added. Philippine shares, which resumed trading after a holiday, dived over 2% to touch their lowest in almost two weeks. Real estate company Ayala Land was down 2.5%, while lender BDO Unibank lost 2.2%. The lack of positive catalysts in the Philippine market, coupled with negative sentiments in the property sector after China's plans to curb the Philippine offshore gaming operations were partly behind the downturn in the benchmark, said Rachelle Cruz, research analyst, AP Securities. Singapore's benchmark index also advanced, lifted by conglomerates Jardine Matheson Holdings and Jardine Strategic Holdings that climbed 2% and 0.4%, respectively. Vietnam shares traded higher, with heavyweights Vingroup JSC hitting its highest in nearly a week, and Vinhomes JSC gaining 0.8%. The Thai benchmark index flitted between positive and negative territory, as gains in energy and industrial sectors offset losses in telco stocks. Meanwhile, Thailand's manufacturing production index (MPI) in July dropped 3.23% from a year earlier, a greater fall than expected, dragged down by lower production of cars, petroleum and steel. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0430 GMT STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3071.6 3065.33 0.20 Bangkok 1623.9 1622.73 0.07 Manila 7761.54 7889.41 -1.62 Jakarta 6260.216 6214.51 0.74 Kuala Lumpur 1597.19 1600.53 -0.21 Ho Chi Minh 985.75 982.88 0.29 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3071.6 3068.76 0.09 Bangkok 1623.9 1563.88 3.84 Manila 7761.54 7,466.02 3.96 Jakarta 6260.216 6,194.50 1.06 Kuala Lumpur 1597.19 1690.58 -5.52 Ho Chi Minh 985.75 892.54 10.44 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)

SE Asia Stocks-Fall tracking broader sell-off on trade war fears

26 Aug 2019

* Banking stocks drag Indonesia down * Singapore closes at nearly 8-mth low * Thai stocks at their lowest close in nearly two weeks By Soumyajit Saha Aug 26 Southeast Asian markets ended lower on Monday, tracking a broader Asian sell-off, as the United States and China slapped retaliatory tariffs on each other over the weekend in further escalation of a protracted trade war. Though both the countries sought to ease trade war tensions on Monday, with Beijing calling for calm and U.S. President Donald Trump predicting a deal, local markets seemed to shrug off the optimism. Washington on Friday added an extra 5% duty on about $500 billion worth of Chinese goods, retorting the Chinese imposition of an extra 10% tariff on $75 billion worth of U.S. goods earlier that day. "Asia and Pacific markets, especially those with high beta to China growth and world trade, which is basically all of them, are facing possibly their worst single down day of the year today," Jeffrey Halley, senior market analyst, Asia Pacific at OANDA said in a note to clients. China is Southeast Asia's biggest trading partner. Quantifying risks related to the escalation of the trade war will be difficult, but exports and growth outlooks will be weakened further as recession risks grow, Mizuho bank said in a note to clients. Thai stocks fell to its lowest close in nearly two weeks, hurt by losses in energy and financial sectors. Lender Kasikornbank PCL was down 1.6%, while gas explorer and supplier PTT PCL lost 3.5%. Industrial and financial stocks weighed on the Singapore benchmark index, as it closed at its lowest in almost eight months. Lender DBS Group Holdings fell 1.2%, while conglomerate Jardine Matheson Holdings lost 2.5%. The city-state's July industrial production dropped 0.4% year-on-year, but the fall was much narrower than broader forecasts. Production had contracted 8.1% in June, according to revised figures from the Singapore Economic Development Board. Malaysian shares snapped two consecutive sessions of gains to fall on Monday. The index was hurt most by heavyweights such as Petronas Chemicals Group Bhd and Petronas Gas Bhd, which lost 4.3% and 1.9%, respectively. Indonesian stocks also fell to close at a near two-week low, dragged down by losses in the banking sector. Bank Mandiri (Persero) was down 1.7%, while Bank Negara Indonesia (Persero) lost 1.6%. An index of Indonesia's 45 most liquid stocks was down 0.8% The Philippines index was closed for a public holiday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3065.33 3110.35 -1.45 Bangkok 1622.73 1646.68 -1.45 Jakarta 6214.51 6255.597 -0.66 Kuala Lumpur 1600.53 1609.33 -0.55 Ho Chi Minh 982.88 992.45 -0.96 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3065.33 3068.76 -0.11 Bangkok 1622.73 1563.88 3.76 Manila 7889.41 7,466.02 5.67 Jakarta 6214.51 6,194.50 0.32 Kuala Lumpur 1600.53 1690.58 -5.33 Ho Chi Minh 982.88 892.54 10.12 (Reporting by Soumyajit Saha; editing by Uttaresh.V)

SE Asia Stocks-Drop as fresh tariffs stoke equity sell-off

26 Aug 2019

* Thai benchmark index dives 2% * Singapore touches its lowest in nearly eight months * Losses in banking stocks dent the Malaysian index By Soumyajit Saha Aug 26 Southeast Asian stock markets dropped on Monday, tracking a broader global sell-off, with the Thai index losing the most as an escalation in the tit-for-tat Sino-U.S. trade dispute over the weekend battered risk appetite. U.S. President Donald Trump raised tariffs on about $500 billion worth of Chinese goods by 5% on Friday, in response to China's imposition of as much as an extra 10% on existing tariffs against U.S. goods worth about $75 billion. Asian shares sank as the latest move in the trade war shook confidence in the world economy and sent investors steaming to the safe harbours of sovereign bonds and gold, while slugging emerging market currencies. The latest trade salvo will adversely affect China's supply-chain partners and would add to warnings of "more acute exports pain in Asia with attendant downside to growth", Mizuho Bank said in a note to clients. China is Southeast Asia's biggest trading partner. "Quantifying downside risks is challenging. Demand for exports and growth outlook are further dimmed. Correspondingly, recessions risks are magnified," the note added. Thai stocks retreated from previous session's gains to dive 2%, marking their worst session since Dec. 25, 2018. The index was dragged lower by in energy and financial sectors. Lender Kasikornbank PCL was down 1.9%, while gas explorer and supplier PTT PCL lost 2.4%. Singapore's benchmark index touched its lowest in almost eight months, with heavyweights such as DBS Group Holdings and Jardine Matheson Holdings losing 1.5% and 1.8%, respectively. The city-state's July industrial production data, slated for release later in the day, will be widely watched after poor inflation figures last week prompted a downgrade in the official full-year forecast. Banking stocks pushed the Malaysian benchmark index down 1% to its lowest in more than a week. Malayan banking Bhd slipped 1%, while Public Bank Bhd shed 0.6%. Indonesian stocks touched their lowest in nearly three weeks, dragged by losses in financial and consumer sectors, with Bank Central Asia losing 1% and consumer goods company Unilever Indonesia falling 0.8%. An index of Indonesia's 45 most liquid stocks was down 1.3%. The Philippines index was closed for a public holiday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0407 GMT STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3066.11 3110.35 -1.42 Bangkok 1611.67 1646.68 -2.13 Jakarta 6198.369 6255.597 -0.91 Kuala Lumpur 1591.99 1609.33 -1.08 Ho Chi Minh 980.94 992.45 -1.16 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3066.11 3068.76 -0.09 Bangkok 1611.67 1563.88 3.06 Manila 7889.41 7,466.02 5.67 Jakarta 6198.369 6,194.50 0.06 Kuala Lumpur 1591.99 1690.58 -5.83 Ho Chi Minh 980.94 892.54 9.90 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)

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