November 11, 2016 / 5:31 AM / 2 years ago

SE Asia Stocks-Skid on fears soaring US bond yields could trigger capital outflows

By Rushil Dutta
    Nov 11 (Reuters) - Southeast Asian stock markets sank on
Friday, with Indonesia hitting an eight-week low, on fears of
higher U.S. interest rates under President-elect Donald Trump
would spark capital outflows from the region.
    Asia ex-Japan shares fell 1.4 percent, while
emerging Asian currencies and bonds lost ground as U.S. bond
yields continued to soar on views that Trump's spending plans
will push up inflation, possibly triggering more aggressive rate
hikes by the Federal Reserve. 
    Indonesian and Philippine shares were the
worst hit, with Indonesia shedding as much as 3.3 percent.
    The rupiah fell as much as 2.7 percent to its
weakest in more than four months.
    Indonesian markets have enjoyed relatively high inflows into
it stock and bonds markets in the past few months, making them
vulnerable to hot money outflows. 
    "Investors look to Indonesia when they think about emerging
Asian markets and the resurfacing concern on trade likely
weighed more heavily on the market," said Jingyi Pan, a market
strategist with IG Asia in Singapore. 
    "Moreover, the slide in oil price overnight is likely to
have further taken a toll on the rupiah."
    Oil prices fell as the market refocused on a persistent fuel
supply overhang that is not expected to subside unless OPEC and
other producers make a significant cut to their output. 
    Philippine shares were 2.8 percent lower with Globe Telecom
Inc posting its biggest percentage fall in over three
years, declining as much as 5.7 percent.
    Malaysian shares dropped as much as 1.7 percent to
their lowest in over four months with financial and telecom
stocks the worst hit.  
    The ringgit plunged to its weakest in more than 12
years in offshore markets as investors dumped government bonds,
while the spot rate barely moved as the central bank kept a
tight grip on the onshore market. 
    Meanwhile, central bank data showing the economy grew 4.3
percent from a year earlier, beating forecast, did little to
placate markets.  
For Asian Companies click;  

  STOCK MARKETS                                 
 Change as of                                   
 0500 GMT                               
  Market         Current     Previous   Pct Move
  Singapore      2815.27     2834.09    -0.66
  Bangkok        1503.64     1514.26    -0.70
  Manila         6982.97     7181.87    -2.77
  Jakarta        5289.32     5450.306   -2.95
  Kuala Lumpur   1636.49     1652.74    -0.98
  Ho Chi Minh    677.92      678.17     -0.04
  Change on                             
  Market         Current     End 2015   Pct Move
  Singapore      2815.27     2882.73    -2.34
  Bangkok        1503.64     1288.02    16.74
  Manila         6982.97     6952.08    0.44
  Jakarta        5289.32     4593.008   15.16
  Kuala Lumpur   1636.49     1692.51    -3.31
  Ho Chi Minh    677.92      579.03     17.08
 (Reporting by Rushil Dutta; Additional reporting by Nichola
Saminather in Singapore and Sandhya Sampath in Bengaluru;
Editing by Subhranshu Sahu)
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