September 12, 2016 / 9:57 AM / 2 years ago

SE Asia Stocks-Fall on Fed rate hike bets; Thailand down over 2 pct

By Krishna V Kurup
    Sept 12 (Reuters) - Thailand and Vietnam shares dived 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 2.4 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.
    If there is no major domestic upheaval, the market should
trade around 1,400 level for the rest of the year, he added.
    PTT Pcl fell 4.3 percent, while PTT Exploration and
Production Pcl dropped 5.1 percent.
    Vietnam shares fell as much as 1.7 percent in their
biggest intra-day percentage fall in nearly six weeks, with
consumer staples and energy stocks losing the most.
    Vietnam Dairy Products JSC declined 1.3 percent,
while Petrovietnam Gas JSC fell 2.2 percent.
    MSCI's broadest index of Asia-Pacific shares outside Japan
 fell 2.9 percent at 0940 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.

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  STOCK MARKETS                                        
  Change on day                                        
  Market           Current       Prev close   Pct Move
  Bangkok          1411.85       1445.28      -2.31
  Ho Chi Minh      659.76        666.88       -1.07
  Change on year                              
  Market           Current       End 2015     Pct Move
  Bangkok          1411.85       1288.02      9.61
  Ho Chi Minh      659.76        579.03       13.94

 (Reporting by Krishna V Kurup in Bengaluru; Additional
reporting by Sindhu Chandrasekaran; Editing by Subhranshu Sahu)
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