SE Asia Stocks-Sluggish on Fed rate hike uncertainty
By Krishna V Kurup Sept 14 (Reuters) - Most Southeast Asian stock markets traded lower on Wednesday in line with Asian peers, as rising bond yields and volatility forced investors to unwind positions and uncertainty over global central banks' next moves hurt risk appetite. While the rise in U.S. bond yields was in part due to heavy Treasury and corporate debt supply, it also reflected concerns about the limits of global central bank policy in reviving growth. U.S. interest rate futures <0#FF:> are pricing in only about a 10 percent chance of a rate hike by the Federal Reserve at its policy review next week. Inflows into emerging-market equity funds amounted to $24 billion over the past 10 weeks, the highest on record, according to Bank of America Merrill Lynch flow data. An index of market volatility soared to its highest in three months. Indonesian shares declined as much as 1.7 percent in their biggest percentage fall in nearly 3 months and hit a near two-month low, with energy and consumer non-cyclical stocks among the biggest losers. "Expect profit-taking by foreign investors to continue for the time being - which should weigh on prices and valuations," said Taye Shim, an analyst with Daewoo Securities, adding that escalating concerns over a Fed rate hike next week should also keep investors on the sidelines. United Tractors Tbk PT was down 3.7 percent, while Hanjaya Mandala Sampoerna Tbk PT fell 1.3 percent. Malaysian shares dropped about 1 percent in their biggest intraday percentage fall since June 24 and hit their lowest since Aug. 5. Financial stocks led the losers with Hong Leong Bank Bhd falling 1.68 percent and Public Bank Bhd losing 1.72 percent. Singapore shares fell marginally with Singapore Telecommunications Ltd shedding 1 percent and Hutchison Port Holdings Trust down 2.3 percent. Bucking the trend, Thailand and Vietnam shares rose marginally. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change at 0416 GMT Market Current Prev close Pct Move Singapore 2808 2818.38 -0.37 Bangkok 1450.99 1446.84 0.29 Manila 7524.98 7550.27 -0.33 Jakarta 5137.19 5215.567 -1.50 Kuala Lumpur 1661.39 1677.18 -0.94 Ho Chi Minh 660.31 659.72 0.09 Change on year Market Current End 2015 Pct Move Singapore 2808 2882.73 -2.59 Bangkok 1450.99 1288.02 12.65 Manila 7524.98 6952.08 8.24 Jakarta 5137.19 4593.008 11.85 Kuala Lumpur 1661.39 1692.51 -1.84 Ho Chi Minh 660.31 579.03 14.04 (Reporting by Krishna V Kurup in Bengaluru; Editing by Subhranshu Sahu)
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