SE Asia Stocks-Thailand falls 2.7 pct, Philippines down more than 1 pct
By Susan Mathew Oct 12 (Reuters) - Most Southeast Asian stock markets fell on Wednesday, tracking Asian peers, on subdued risk sentiment as expectations the U.S. Federal Reserve would hike interest rates in December lifted the dollar and pushed up bond yields overnight. Sentiment also took a hit as a dour start to Wall Street's corporate earnings season knocked U.S. stocks. The key reason why regional markets are down today is because of fears of an imminent rate hike in the U.S., said Taye Shim, an analyst with Daewoo Securities in Indonesia. U.S. interest rate futures <0#FF:> are pricing in about 75 percent chance of a rate hike by December, and investors are growingly convinced that the Fed will avoid a hike at its next meeting less than a week before the U.S. presidential election in November. The spectre of rising U.S. interest rates helped lift the dollar's index against a basket of six major currencies to its highest in seven months, while the 10-year U.S. Treasuries yield touched its highest level since early June. "Speculation is that a hike in interest rates would lead to some of the flow destruction in the markets and therefore, it adds some pressure on sentiment," Shim said. The International Monetary Fund warned last week that a disorderly reaction to possible U.S. interest rate hikes could disrupt capital flows and heighten asset price volatility in Asia. Philippines fell as much as 1.4 percent to hit its lowest in nearly 4 months, dragged down by energy and consumer stocks. Semirara Mining Corp and Ayala Corp were among the biggest losers in their respective sectors. Thai stocks fell as much as 2.7 percent to their lowest in more than 3 months, pulled down by consumer stocks and industrials. Singapore fell nearly 1 percent to hit the lowest in more than 2 weeks, while Indonesia and Malaysia were marginally lower. Bucking the trend, Vietnam rose slightly, its second session of gains. Asian shares fell, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.4 percent For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change at 0526 GMT Market Current Previous close Pct Move Singapore 2830.43 2856.13 -0.90 Bangkok 1402.98 1442.21 -2.72 Manila 7419.59 7520.82 -1.35 Jakarta 5378.269 5381.997 -0.07 Kuala Lumpur 1666.73 1668.72 -0.12 Ho Chi Minh 683.94 682.36 0.23 Change so far Market Current End 2015 Pct Move Singapore 2830.43 2882.73 -1.81 Bangkok 1402.98 1288.02 8.93 Manila 7419.59 6952.08 6.72 Jakarta 5378.269 4593.008 17.10 Kuala Lumpur 1666.73 1692.51 -1.52 Ho Chi Minh 683.94 579.03 18.12 (Reporting by Susan Mathew; Editing by Biju Dwarakanath)
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