SE Asia Stocks-Philippines falls; others up as Fed rate hike prospects recede
By Sindhu Chandrasekaran Sept 16 (Reuters) - Philippine shares fell 1.4 percent on Friday, erasing gains from the previous session, while other markets in region rose as the prospects of a rate hike by the Federal Reserve receded further on weak U.S. retail data. U.S. retail sales fell more than expected in August, pointing to cooling domestic demand that further diminished expectations of a rate raise next week. Futures traders are now pricing in a 12 percent chance of a rate increase this month, down from 15 percent on Wednesday, according to CME Group's FedWatch tool. Consumer price inflation data, due later in the day, is the next test for rates-focused traders. "Asian markets are following the momentum on Wall Street," said Vishnu Varathan, a senior economist with Mizuho Bank. Singapore shares gained 0.8 percent, heading for their first rise in four sessions, driven by energy and financial stocks. Keppel Corp Ltd was up 1.2 percent, while DBS Group Holdings Ltd rose 1.4 percent. "Diminished prospects of a Fed rate hike boosted overall risk-on sentiment," said Varathan, adding there could be some profit-taking in the afternoon session. Thai stocks gained marginally, with telecom and energy shares leading. Advanced Info Service Pcl rose 1.6 percent while PTT Pcl was up 1.2 percent. Bucking the trend, Philippine shares dropped 1.4 percent, snapping Thursday's 2.2 percent gain, dragged down by consumer cyclicals and financials. The market is reversing gains from the previous session as the last-minute buying on Thursday was seen to be unsustainable, said Charles Ang, an analyst with COL Financial Group Inc. SM Investments Corp fell 2.4 percent while Bank of the Philippine Islands dropped 3.6 percent. "Expect it (index) to remain down for the rest of the day," Ang said. Malaysia was closed for a public holiday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change at 0530 GMT Market Current previous Pct Move close Singapore 2828.11 2805.52 0.81 Bangkok 1471.58 1463.39 0.56 Manila 7601.8 7708.42 -1.38 Jakarta 5295.678 5265.819 0.57 Kuala Lumpur 1652.99 1661.39 -0.51 Ho Chi Minh 653.62 656.18 -0.39 Change so far this year Market Current End prev yr Pct Move Singapore 2828.11 2882.73 -1.89 Bangkok 1471.58 1288.02 14.25 Manila 7601.8 6952.08 9.35 Jakarta 5295.678 4593.008 15.30 Kuala Lumpur 1652.99 1692.51 -2.33 Ho Chi Minh 653.62 579.03 12.88 (Reporting by Sindhu Chandrasekaran; Editing by Sunil Nair)
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