SE Asia Stocks-Wary ahead of Fed meet, Brexit
By Krishna V Kurup June 14 (Reuters) - Southeast Asian stocks were cautious on Tuesday as investors played safe ahead of a policy meeting by the U.S. Federal Reserve that begins later in the day and on worries a referendum next week could see Britain exit the European Union. The U.S. central bank is widely expected to leave interest rates unchanged after a much weaker-than-expected May nonfarm payrolls report. "Investors are looking at whether Fed will take a hawkish or dovish stance at the end of the meeting. It's most likely that they'll increase (interest) rates at least once this year," said Grace Aller, an analyst with Manila-based AP Securities. The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week and are expected to stand pat on policy with the Brexit vote looming. Britain's "Out" campaign widened its lead over the "In" camp ahead of the referendum, according to two opinion polls published by ICM on Monday. A vote to leave the 28-member bloc, dubbed Brexit, could tip Europe back into recession and throw global financial markets into turmoil. Index provider MSCI's decision on whether to allow domestic Chinese shares into its emerging markets index also dampened sentiment. "MSCI's inclusion of China's A shares can also push the markets further sideways or it could have a short-term negative effect," Aller said. "Even though inclusion will only take effect next year, it will reduce the weightage of other countries and have a greater impact on larger markets." A decision to allow yuan-denominated shares - or A shares - into its widely used Emerging Markets Index, could draw $400 billion into Chinese shares in the next decade, MSCI estimates show. The Philippine index closed down 1.25 percent on profit taking. Consumer cyclicals and utilities were the biggest drag on the index. SM Investment Corp fell 3.1 percent, while Aboitiz Equity Ventures Inc was down 2.8 percent. Singapore ended 0.6 percent weaker, its fourth consecutive day of losses as oil and gas stocks led the index lower on falling global oil prices. Keppel Corp Ltd fell 1.5 percent. Vietnam closed marginally higher, recovering from losses earlier in the day, with healthcare stocks leading the gainers. Earlier, Asian stocks fell, with the MSCI's broadest index of Asia-Pacific shares outside Japan down 0.4 percent. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS STOCK MARKETS Change on day Market Current Previous Pct Move Close Singapore 2768.33 2785.43 -0.61 Bangkok 1428.1 1421.86 0.44 Manila 7460.12 7554.4 -1.25 Jakarta 4821.59 4807.226 0.30 Kuala Lumpur 1626.11 1629.77 -0.22 Ho Chi Minh 625.43 623.58 0.30 Change on year Market Current End 2015 Pct Move Singapore 2768.33 2882.73 -3.97 Bangkok 1428.1 1288.02 10.88 Manila 7460.12 6952.08 7.31 Jakarta 4821.59 4593.008 4.98 Kuala Lumpur 1626.11 1692.51 -3.92 Ho Chi Minh 625.43 579.03 8.01 (Reporting by Krishna V Kurup in Bengaluru; Editing by Biju Dwarakanath)
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