June 15, 2017 / 11:22 AM / a year ago

SE Asia Stocks-End lower on hawkish Fed; Singapore at 1-week closing low

    By Nicole Pinto
    June 15 (Reuters) - Southeast Asian markets ended lower on
Thursday, hit by a hawkish Federal Reserve and weak oil prices,
while Singapore shares extended their slide to post their lowest
close in a week.
    The Federal Reserve raised interest rates on Wednesday for
the second time in three months, and said it would begin cutting
its holdings of bonds and other securities this year. 

    However, the Fed's decision and confidence in continued U.S.
economic growth was overshadowed by surprisingly weak data
released earlier in the day.
    U.S. consumer prices unexpectedly fell on month in May and
the annual increase in core CPI slipped to 1.7 percent, the
smallest rise since May 2015, after advancing 1.9 percent in
    "Markets are reacting to the situation and have priced in
the rate hike," said Liu Jinshu, director of research, NRA
    "The tone and projection suggest that one more rate hike is
yet to come, and on top of that, we still have the shrinking
treasury balance sheet to think about. I think the market is
trying to digest this additional information," he added.
    Investor sentiment was also dented by oil prices, which fell
to six-week lows under pressure from high global inventories and
doubts about OPEC's ability to implement production cuts.
    Singapore shares posted their lowest close in one
week, dragged down by the financial sector. 
    While Oversea-Chinese Banking Corp ended at a
one-week closing low, index heavyweights United Overseas Bank
Ltd closed 2.2 percent lower and DBS Group Holdings
 shed 0.9 percent.
    Indonesia shares retreated from their record closing
high hit in the previous session to end 0.3 percent lower, with
Astra International Tbk PT pulling down the index. 
    Indonesia's central bank on Thursday left its benchmark
interest rate where it has been since October, saying the level
is consistent with efforts to maintain stability while pushing
for economic growth recovery.
    Malaysia ended in negative territory after hitting a
two-year high earlier in the session.
    Vietnam shares ended flat. 
  Market                   Current       previous     Pct Move
  Singapore                3232.09       3253.43      -0.66
  Bangkok                  1573.53       1577         -0.22
  Manila                   7964.49       7966.01      -0.02
  Jakarta                  5776.283      5792.897     -0.29
  Kuala Lumpur             1790.01       1792.35      -0.13
 Ho Chi Minh               760.57        760.77       -0.03
  Change so far this year                             
  Market                   Current       End 2016     Pct Move
  Singapore                3232.09       2880.76      12.20
  Bangkok                  1573.53       1542.94      1.98
  Manila                   7964.49       6840.64      16.4
  Jakarta                  5776.283      5296.711     9.05
  Kuala Lumpur             1790.01       1641.73      9.03
 Ho Chi Minh               760.57        664.87       14.14

 (Reporting by Nicole Pinto in Bengaluru; Editing by Sherry
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