SE Asia Stocks - Falter amid Fed rate outlook
BANGKOK, Sept 10 (Reuters) - Southeast Asian stock markets fell on Wednesday as the prospect of sooner-than-expected U.S. Federal Reserve rate hikes dented sentiment across Asia, derailing rallying markets such as Indonesia, Thailand and the Philippines. According to research published Monday by the San Francisco Fed, investors expected the Fed to keep interest rates lower for longer, and to raise them more slowly, than the makers of U.S monetary policy themselves expect. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.2 percent. Indonesia's composite index fell nearly 1 percent as foreign outflows hit shares of large caps, sending Bank Central Asia down 1.4 percent after a record close on Tuesday. Telkom Indonesia, which hit a record high on Monday, was among the losers. The index hit a record close of 5,246.48 on Monday as the market priced in the benefits of a likely end to fuel subsidy. "There is rising chance that government will increase fuel price in the fourth quarter of 2014," said broker Maybank Kim Eng in a report. "Another fuel price hike will push inflation back to around 9 percent, but currency is likely to strengthen and interest rate will only move up marginally from the current policy rate of 7.5 percent," it said. The Thai key SET index was down 0.5 percent, while the Philippine main index eased 0.3 percent. Both marked more than 15-month closing highs on Monday. The Thai stock market posted foreign inflows for a seventh straight session on Tuesday amid confidence in the economic outlook. Brokers expect the market to be range-bound this week. Investors are awaiting clearer economic direction from Prime Minister Prayuth Chan-ocha and his government, who have scheduled to deliver policy in the National Legislative Assembly on Friday. Shares of telecoms firm Jasmine International Pcl fell almost 3 percent amid concerns about a possible delay of its planned listing of an infrastructure fund. It touched a six-week high on Tuesday after a favourable court ruling. For Asian Companies click; For South East Asia Hot Stock reports, click; SOUTHEAST ASIAN STOCK MARKETS Change at 0455 GMT Market Current Prev Close Pct Move Singapore 3337.87 3342.96 -0.15 Kuala Lumpur 1869.13 1874.12 -0.27 Bangkok 1574.70 1583.18 -0.54 Jakarta 5149.07 5197.12 -0.92 Manila 7233.23 7253.67 -0.28 Ho Chi Minh 626.95 626.92 0.00 (1 US dollar = 32.1200 baht) (Reporting by Viparat Jantraprap; Editing by Prateek Chatterjee)
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