September 14, 2016 / 10:37 AM / 2 years ago

SE Asia Stocks-Wary on Fed rate hike uncertainty, rising bond yields

By Sindhu Chandrasekaran
    Sept 14 (Reuters) - Most Southeast Asian stock markets ended
lower on Wednesday in line with Asian peers, as rising bond
yields and volatility forced investors to unwind positions while
uncertainty over global central banks' next moves hurt risk
    While the rise in U.S. bond yields was in part due to heavy
Treasury and corporate debt supply, it also reflected concerns
about the limits of global central bank policy in reviving
    U.S. interest rate futures <0#FF:> are pricing in only about
a 10 percent chance of a rate hike by the Federal Reserve at its
policy review next week.
    Inflows into emerging-market equity funds amounted to $24
billion over the past 10 weeks, the highest on record, according
to Bank of America Merrill Lynch flow data.
    Indonesian shares fell for a fourth straight session
with consumer staples and discretionary stocks leading the
losses. Astra International Tbk PT fell 2.8 percent,
while PT Indofood CBP Sukses Makmur Tbk dropped 4.2
    Negative sentiments in the market have become "good excuses
for investors to lock in their profits," Daewoo Securities
Indonesia said in a note.
    Malaysian shares declined for a third straight
session, led by telecom services and financial stocks. Axiata
Group Bhd fell 3.3 percent, while Public Bank Bhd
 dropped 1.7 percent.
    Malaysian banks' exposure to the oil and gas sector is still
high and we expect this to continue to remain an issue for these
banks due to volatile oil prices, Nomura said in note. 
    Malaysia is the only clear-cut market in the region which
loses when oil prices fall, said Peter Sartori, head of Asian
equity at Nikko Asset Management in Singapore, adding that "many
fiscal positions across Asia are improving, except for
    Bucking the trend, Thailand shares closed 0.8
percent higher, led by financials and industrials.
    "The long-term future for Thailand is pretty good," Sartori
    Thailand's central bank raised its 2016 economic growth
forecast to 3.2 percent from 3.1 percent, but maintained next
year's growth outlook at 3.2 percent. 
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  STOCK MARKETS                                        
  Change on day                                        
  Market           Current       Prev close   Pct Move
  Singapore        2809.35       2818.38      -0.32
  Bangkok          1458.19       1446.84      0.78
  Manila           7546.01       7550.27      -0.06
  Jakarta          5146.038      5215.567     -1.33
  Kuala Lumpur     1661.39       1677.18      -0.94
  Ho Chi Minh      656.64        659.72       -0.47
  Change on year                              
  Market           Current       End 2015     Pct Move
  Singapore        2809.35       2882.73      -2.55
  Bangkok          1458.19       1288.02      13.21
  Manila           7546.01       6952.08      8.54
  Jakarta          5146.038      4593.008     12.04
  Kuala Lumpur     1661.39       1692.51      -1.84
  Ho Chi Minh      656.64        579.03       13.40
 (Reporting by Sindhu Chandrasekaran; Additional reporting by
Nichola Saminather; Editing by Subhranshu Sahu)
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