May 24, 2016 / 10:07 AM / 2 years ago

SE Asia Stocks-Bearish on U.S. rate rise concerns, falling oil

By Rushil Dutta
    May 24 (Reuters) - Most Southeast Asian indexes closed flat
to lower on Tuesday as investors turned bearish after U.S
policymakers flagged the possibility of a rate increase as early
as June, while falling global oil prices also dampened
    San Francisco Fed President John Williams on Monday forecast
two or more rate hikes this year, adding the Fed would analyse
another month's economic data before reaching a conclusion in
its June meeting. 
    Separately, St. Louis Federal Reserve President James
Bullard said U.S. interest rates being kept too low for too long
could cause financial instability in future and stronger market
expectations for a rate rise are "probably good". 
    "Concerns over the rate hike in June are causing weakness in
the Asian markets. We, therefore, expect bearish markets until
then," a trader from Singapore said.
    "However, if the rate hike is pushed to the end of the year,
we might see some pick-up in trading activities."
    Singapore's Straits Times Index closed lower, dragged
down by oil and gas stocks, and financials. 
    Offshore engineering firm Sembcorp Marine closed
2.2 percent lower, while oil-rig firm Keppel Corp 
finished down 1.3 percent.
    Oil fell for a fifth consecutive day on Tuesday on rising
production from major exporters, and as the dollar strengthened
as investors continued to factor in the chances of a near-term
U.S. interest rate rise.   
    Indonesian stocks fell for the first time in three
sessions, weighed down by energy stocks.
    Petroleum distributor AKR Corporindo Tbk PT lost
2.4 percent.
    Thailand closed up 0.2 percent, recovering from
losses earlier in the day, pushed higher by finiancials and
telecom services.
    Malaysia fell, dragged down by financials and
consumer cyclicals.
    Malayan Banking Bhd lost 1.9 percent, while CIMB
Group slipped 1.4 percent.
    Philippine shares however closed higher as financial
stocks gained. BDO Unibank finished up 0.5 percent. 
    MSCI's broadest index of Asia-Pacific shares outside Japan
 fell 0.7 percent.
For Asian Companies click;  

  STOCK MARKETS                                 
  Change on day                                 
  Market         Current     previous   Pct Move
  Singapore      2752.39     2766.93    -0.53
  Bangkok        1384.26     1381.69    0.19
  Manila         7356.72     7306.69    0.68
  Jakarta        4710.785    4743.662   -0.69
  Kuala Lumpur   1625.84     1634.89    -0.55
  Ho Chi Minh    611.62      611.03     0.10
  Change on                             
  Market         Current     End prev   Pct Move
  Singapore      2752.39     2882.73    -4.52
  Bangkok        1384.26     1288.02    7.47
  Manila         7356.72     6952.08    5.82
  Jakarta        4710.785    4593.008   2.56
  Kuala Lumpur   1625.84     1692.51    -3.94
  Ho Chi Minh    611.62      579.03     5.63

 (Reporting by Rushil Dutta; Editing by Subhranshu Sahu)
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