September 12, 2016 / 5:21 AM / 2 years ago

SE Asia Stocks-Fall on renewed fears of Fed rate hike

By Krishna V Kurup
    Sept 12 (Reuters) - Thailand and Vietnam shares fell in line
with broader Asian markets on Monday, as investors were put off
by rising bond yields and talks of a rate hike by the U.S.
Federal Reserve as early as next week.
    Reports that the Bank of Japan is studying options to
steepen the Japanese bond yield curve as authorities are looking
out for policy tools to revive the economy also hit sovereign
debt and risk appetite globally. 
    Global markets have started pricing in a greater chance of a
Fed rate hike on Sept. 21 on the back of a series of hawkish
    No less than three Fed officials are expected to speak later
in the day, including board member and noted dove Lael Brainard.
Any hint of hawkishness would likely further pressure bonds and
    "News of Fed rate hike is clearly like a perfect storm of
reason to sell down the market," said Thapana Phanich, an
analyst with Deutsche TISCO Investment Advisory.
    Investor sentiment was also hurt as oil prices fell over 1.5
percent, extending losses from the previous session, after
reports showed increasing drilling activity in the United
States, indicating that producers can operate profitably around
current levels. 
    Thai shares fell for a fourth straight session,
losing as much as 1.8 percent to its lowest since June 27.
    Investors are taking money off the table and the impact on
the market is mainly from foreign investors, Thapana said,
adding that if there was no major domestic upheaval, we should
see the market trading around 1,400 level for the rest of the
    PTT Pcl fell 2.5 percent, while PTT Exploration and
Production Pcl dropped 3.8 percent.
    Vietnam shares were down 1.2 percent, with consumer
staples and financials losing the most.
    Vietcom Bank fell 3.1 percent, while Vietnam Dairy
Products JSC declined 1.3 percent.
    MSCI's broadest index of Asia-Pacific shares outside Japan
 fell 2.4 percent at 0440 GMT, its largest
single-day drop since the fall after Britain's vote in late June
to leave the European Union.    
    Markets in Singapore, Malaysia, Indonesia and the
Philippines were closed for a public holiday.
    For Asian Companies click;  

  STOCK MARKETS                                           
  Change at 0440 GMT                                      
  Market              Current       Prev close   Pct Move
  Bangkok             1426.14       1445.28      -1.32
  Ho Chi Minh         658.77        666.88       -1.22
  Change on year                                 
  Market              Current       End 2015     Pct Move
  Bangkok             1426.14       1288.02      10.72
  Ho Chi Minh         658.77        579.03       13.77
 (Reporting by Krishna V Kurup in Bengaluru; Additional
reporting by Sindhu Chandrasekaran; Editing by Subhranshu Sahu)
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