SE Asia Stocks-Fall on fears over BOJ bond-buying program; Philippines down 2 pct

miércoles 3 de agosto de 2016 01:45 GYT
 

By Hanna Paul
    Aug 3 (Reuters) - Most Southeast Asian stock markets fell on
Wednesday, in line with Asian peers and weaker U.S. and European
shares, as fears that the Bank of Japan may retreat from its
massive bond-buying campaign spooked debt markets and investors
globally.
    While Japanese bonds steadied on Wednesday they have still
suffered the worst sell-off in over three years as investors
feared the BoJ was out of easing ammunition and might leave it
to fiscal policy to stimulate the economy. 
    Tokyo on Tuesday approved 13.5 trillion yen ($132 billion)
in fiscal measures and the IMF urged Japan to mix fiscal
stimulus with further central bank easing measures that could
include rate cuts and more asset purchases. 
 
    "Prime Minister Shinzo Abe's stimulus details didn't give
rise to much optimism, which in turn has been inferred as a cue
whereby Bank of Japan may not step up bond-buying," said Vishnu
Varathan, senior economist at Mizuho Bank in Singapore.
    "We don't think BOJ is going to capitulate on their
commitment to bond-buying. Nonetheless, the pessimism has come
with a fair bit of disappointment."
    Weak U.S. economic data and disappointing auto sales numbers
drove Wall Street down along with a drop in the U.S. dollar
which fell to a six-week low. 
    European stocks dropped to a three-week low, dragged down by
banks such as Commerzbank, adding to the jittery mood
as it sparked sell-offs in banking stocks. 
    Philippines fell as much as 2 percent, its lowest in
more than three weeks, dragged down by industrial and financial
stocks. Infrastructure group Aboitiz Equity Ventures 
led the losers, and was trading 6.1 percent lower. 
    Singapore stocks retreated as much as 1 percent to
their lowest since June 29, dragged down by oil and financial
stocks.
    Oversea-Chinese Banking Corp was down 2.6 percent,
while Sembcorp Marine fell 1.9 percent.
    U.S. crude futures remained below $40 per barrel and Brent
was below $42 as ongoing fuel oversupply and stuttering economic
growth weighed on markets. 
    Indonesia fell marginally, dragged down by telecom
stocks. The index hit its highest since April 2015 on Tuesday.
    Vietnam fell to its lowest in five weeks.
    Bucking the trend, Thai shares edged up ahead of a
decision on benchmark interest rates by the Bank of Thailand
later in the day.    
    Asian shares fell, with MSCI's broadest index of
Asia-Pacific shares outside Japan down 1
percent, backing away from its recent one-year peak. 
    
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SOUTHEAST ASIAN STOCK MARKETS

 STOCK MARKETS                                      
 Change at 0448 GMT                                 
 Market                   Current   Previous close  Pct Move
 Singapore                2830.17   2856.67         -0.93
 Bangkok                  1500.66   1497.51         0.21
 Manila                   7876.64   8037.78         -2.00
 Jakarta                  5366.728  5373.323        -0.12
 Kuala Lumpur             1651.48   1660.23         -0.53
 Ho Chi Minh              631.02    636.05          -0.79
                                                    
 Change on year                                     
 Market                   Current   End 2015        Pct Move
 Singapore                2830.17   2882.73         -1.82
 Bangkok                  1500.66   1288.02         16.51
 Manila                   7876.64   6952.08         13.30
 Jakarta                  5366.728  4593.008        16.85
 Kuala Lumpur             1651.48   1692.51         -2.42
 Ho Chi Minh              631.02    579.03          8.98
 
 (Reporting by Hanna Paul; Editing by Biju Dwarakanath)