June 12, 2017 / 10:35 AM / a year ago

SE Asia Stocks-Range-bound ahead of Fed meeting; Vietnam snaps 2-day fall

    By Shashwat Pradhan
    June 12 (Reuters) - Southeast Asian markets were
range-bound on Monday ahead of a U.S. Federal Reserve policy
meeting that could provide cues on the pace of further rate
tightening in the months to come.
    With the Fed widely expected to raise interest rates at its
two-day meeting that ends on Wednesday, investors will be
focussing on whether the central bank thinks the U.S. economy
is robust enough to withstand further rate hikes through 2017,
and how it plans to whittle down its massive balance sheet.

    "A 25 basis point rate hike is assumed to be a done deal
for the June FOMC (Federal Open Market Committee); with
interest rate markets ascribing over 90 percent probability,"
Mizuho Bank said in a note.
    "This means a 25 basis point hike is baked into market
(prices), and so failure to yank the trigger will result in a
dovish knee-jerk reaction, but this is the outside risk."
    MSCI's broadest index of Asia-Pacific shares outside Japan
, however, was down 0.8 percent as the region's
technology heavyweights were knocked lower by a slide in U.S.
tech shares.
    Vietnam's benchmark index snapped two sessions of
declines to end higher, underpinned by FLC Faros Construction
, which closed 6.9 percent higher, notching its highest
percentage gain in more than three months.
    FLC Group, whose chairman holds a majority stake
in FLC Faro Construction, said it is working with Airbus
 to lease about seven aircraft by 2018. FLC Group aims
to start a new airline that could take to the skies for the
first time early next year.
    Indonesia led the regional markets higher,
bolstered by financial stocks, as investors await Bank
Indonesia's policy rate decision later this week.
    "(We) expect Bank Indonesia to keep its policy rate steady
this week. While Q1 GDP growth came in slightly disappointing,
there are enough data to suggest stronger growth momentum in
H2," DBS Group said in a note.
    Bucking the trend, Singapore shares slipped with
financials accounting for three-fourth of the losses.
    The Malaysian and Philippine markets were closed for local

    For Asian Companies click;  

 Market                   Current      previous close  Pct Move
 Singapore                3248.34      3254.19         -0.18
 Bangkok                  1563.81      1566.65         -0.18
 Jakarta                  5691.436     5675.523        0.28
 Ho Chi Minh              751.09       749.72          0.18
 Change so far this year                                
 Market                   Current      End 2016        Pct Move
 Singapore                3248.34      2880.76         12.76
 Bangkok                  1563.81      1542.94         1.35
 Jakarta                  5691.436     5296.711        7.45
 Ho Chi Minh              751.09       664.87          12.97

 (Reporting by Shashwat Pradhan in Bengaluru; Editing by Sherry
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