May 6, 2019 / 10:35 AM / 2 months ago

SE Asia Stocks-End weaker as Trump threat jolts markets; Singapore dives

    * Trump says will raise U.S. tariffs on $200 bln of Chinese
goods
    * Singapore leads losses in region with a 3.4 pct drop
    * Indonesia's Q1 GDP grows slower than expected 

    By Nikhil Subba
    May 6 (Reuters) - Southeast Asian stocks closed lower on
Monday after U.S. President Donald Trump threatened to hike
tariffs on Chinese goods this week, rekindling trade tensions
between Washington and Beijing, with Singapore leading the
losses in the region.
    Trump sharply escalated tensions between the world's two
largest economies with tweeted comments on Sunday that trade
talks with China were proceeding "too slowly", and that he would
raise tariffs on $200 billion of Chinese goods to 25 percent on
Friday from 10 percent.
    China, the biggest trading partner of Southeast Asia, was
considering cancelling a round of U.S. talks set for this week
because of Trump's comments, the Wall Street Journal reported.
    
    "Trump's announcement regarding a possible increase in
tariff on China will leave quite an impact ... there might be a
possible fallout in the trade deal," AP Securities analyst
Rachelle Cruz said. 
    "...We may see sustained profit-taking over the next few
days (following Trump's comments on tariffs), especially with
most markets sitting on gains from the last few months," said
Liu Jinshu, director of research, NRA Capital.
    Equity markets, which had been largely expecting a trade
accord, fell sharply across export-reliant Asia as further talks
were thrown into doubt.
    The Singapore index, which is highly exposed to
global trade, closed 3 percent weaker to its lowest level since
April 2. The benchmark, which climbed 5.8 percent in April, was
the biggest gainer in the region.
    The United States and China are large export destinations
for Singapore and an escalation in the conflict would mean
severe headwinds for the city-state. Financials led broad-based
declines with DBS Group, Southeast Asia's largest
lender, falling about 4 percent.    
    Indonesia's economy expanded more slowly than expected in
the first quarter of this year, as investment dropped ahead of
elections and campaign spending failed to sustain growth
momentum.  
    Taking a cue from bleak GDP data, the Indonesian index
 closed 1 percent weaker at a four-month low, with sea
transportation company Humpuss Intermoda diving more
than 18 percent, and biodiesel and chemical products
manufacturer Eterindo Wahanatama <ETWA.JK > sinking about 17
percent.
    Philippine shares ended 1.3 percent lower, dented by
declines in financials. Shares of International Container
Terminal Services and Bank of the Philippine Islands
 were among the worst performers on the index.
    There is some uncertainty in the Philippine markets in the
run-up to the general elections on May 13, AP Securities analyst
Rachelle Cruz said.
    Thai markets were closed on Monday on account of a national
holiday marking the coronation of the Thai monarch King Maha
Vajiralongkorn.
    
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS AT 1018 GMT 
    
 Change on day                             
 Market          Current   Previous Close  Pct Move
 Singapore       3290.62   3392.29         -3.00
 Bangkok         1679.05   1679.17         -0.01
 Manila          7862.3    7967.98         -1.33
 Jakarta         6256.352  6319.459        -1.00
 Kuala Lumpur    1632.8    1637.3          -0.27
 Ho Chi Minh     957.97    974.14          -1.66
                                           
 Change on year                            
 Market          Current   End 2017        Pct Move
 Singapore       3290.62   3068.76         7.23
 Bangkok         1679.05   1563.88         7.36
 Manila          7862.3    8558.42         -8.13
 Jakarta         6256.352  6194.498        1.00
 Kuala Lumpur    1632.8    1690.58         -3.42
 Ho Chi Minh     957.97    984.24          -2.67
                                           
 
 (Reporting by Nikhil Subba; Editing by Sherry Jacob-Phillips)
  
Nuestros Estándares:Los principios Thomson Reuters
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