SE Asia Stocks-Wary ahead of Fed meet, Brexit

martes 14 de junio de 2016 05:55 GYT

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
    "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
    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
    Earlier, Asian stocks fell, with the MSCI's broadest index
of Asia-Pacific shares outside Japan down 0.4
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  STOCK MARKETS                                          
  Change on day                                          
  Market             Current       Previous     Pct Move
  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