August 29, 2016 / 5:11 AM / 2 years ago

SE Asia Stocks-Fall as Fed's Yellen makes stronger case for rate hike

By Aparajita Saxena
    Aug 29 (Reuters) - Most Southeast Asian stock markets were
trading lower on Monday, in line with broader Asian peers, after
U.S. Federal Reserve Chair Janet Yellen hinted that a rate
increase was on the cards this year.
    The probability of a rate hike in the near-term has gone up
after Yellen said that a lot of new jobs were being created and
economic growth would likely continue at a moderate pace, even
though data on Friday showed the U.S. economy growing only
sluggishly in the second quarter. 
    Comments by the Fed's No. 2 policymaker, Vice Chair Stanley
Fischer, have also bolstered the case for a rate hike this year.
    The U.S. Fed will meet on Sept. 20-21 during which it is
expected to discuss the possibility of an interest rate
    Markets will generally remain cautious before the September
meeting, and will also take cues from the U.S. jobs data due
Friday, said Ong Kian Lin at RHB Securities Singapore Pte Ltd.
    "The most direct impact of the interest rate hike for
emerging markets is on the local currency versus the dollar,"
Ong said.
    "Once the U.S. dollar strengthens, it will impact oil
producing countries that rely on the dollar movement for
    Indonesia fell, on track for a second straight
session of losses, led lower by utilities.
    "Given investors were finding the right excuse to take
profit post the recent rally, we believe Yellen's speech would
have given investors the right excuse to sell," said Taye Shim,
an analyst with Daewoo Securities, in a note.
    "We expect JCI (Jakarta Composite Index) to undergo a mild
correction today."
    Plastic products manufacturer Langgeng Makmur Industri Tbk
PT, one of the biggest losers on the index, was down
9.76 percent.
     Singapore shares eased 0.7 percent, with oil and gas
stocks losing ground after global oil prices fell about 1
percent on Monday.
    Oil prices eased after Iraq's output rose and Iran said it
would only cooperate in producer talks to freeze output if
fellow exporters recognised its right to fully regain market
    Oil rig builders Keppel Corp and Sembcorp
Industries were among the biggest losers.
    Thailand was flat, while the Philippine stock market
 was closed for the National Heroes Day holiday.
    Vietnam bucked trend to climb 1.3 percent, led by consumer
    Asian shares slid, with the MSCI's broadest index of
Asia-Pacific shares outside Japan extending
losses to 1 percent. 
    For Asian Companies click;  

  STOCK MARKETS                                              
  Change at 0411 GMT                                         
  Market              Current       Previous close  Pct Move
  Singapore           2836.57       2857.65         -0.74
  Bangkok             1543.42       1549.41         -0.39
  Jakarta             5372.186      5438.831        -1.23
  Kuala Lumpur        1679.89       1683.09         -0.19
  Ho Chi Minh         676.16        667.75          1.26
  Change on year                                    
  Market              Current       End 2015        Pct Move
  Singapore           2836.57       2882.73         -1.60
  Bangkok             1543.42       1288.02         19.83
  Jakarta             5372.186      4593.008        16.96
  Kuala Lumpur        1679.89       1692.51         -0.75
  Ho Chi Minh         676.16        579.03          16.77
 (Reporting by Aparajita Saxena in Bengaluru; Editing by Biju
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