SE Asia Stocks-Slide on fears over BOJ bond-buying programme
By Hanna Paul Aug 3 (Reuters) - Most Southeast Asian stock markets fell on Wednesday, in line with Asian peers 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 did not 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. The Philippines lost 1.8 percent to a more than three-week low, dragged down by industrial and financial stocks. Infrastructure group Aboitiz Equity Ventures led the losers, sliding 6.08 percent. Philippine July inflation is seen at a 15-month high as the consumer price index is expected to have risen 2.1 percent in July from last year due to higher food prices, according to a Reuters poll. Singapore stocks slipped 1.02 percent to post their biggest loss since June 29, pulled down by oil and financial stocks. Oversea-Chinese Banking Corp Ltd was down 2.8 percent, while Sembcorp Marine Ltd fell 1.9 percent. The market is worried about the pressure on cash flows of oil companies in the backdrop of the continuous decline in oil prices, added Varathan. Indonesia ended down 0.4 percent after hitting a more than one-year high in the previous session. Vietnam fell to its lowest in five weeks. Bucking the trend, Thai shares edged up 0.7 percent, with healthcare and financial stocks being the best performers on the index. The Thai central bank kept its one-day repurchase rate unchanged at 1.50 percent and said the current monetary policy still supports the country's economic recovery. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on the day Market Current previous Pct Move close Singapore 2827.58 2856.67 -1.02 Bangkok 1507.47 1497.51 0.67 Manila 7888.44 8037.78 -1.86 Jakarta 5351.878 5373.323 -0.40 Kuala Lumpur 1648.5 1660.23 -0.71 Ho Chi Minh 631.61 636.05 -0.70 Change on year Market Current End prev yr Pct Move Singapore 2827.58 2882.73 -1.91 Bangkok 1507.47 1288.02 17.04 Manila 7888.44 6952.08 13.47 Jakarta 5351.878 4593.008 16.52 Kuala Lumpur 1648.5 1692.51 -2.60 Ho Chi Minh 631.61 579.03 9.08 (Reporting by Hanna Paul; Editing by Sherry Jacob-Phillips)
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