SE Asia Stocks-Drop as Fed rate view weighs; on track for weekly losses
* Fed outlook wipes doubts on likelihood of Dec rate raise
* Philippines, Singapore headed for steep losses on the week
* Indonesia set to snap eight-session winning streak
By Nikhil Subba
Nov 9 (Reuters) - Southeast Asian stock markets fell on
Friday as the U.S. Federal Reserve offered no indication on
Thursday that it might slow the pace of its rate increases,
wiping doubts on the likelihood of a rate raise in December.
The Federal Open Market Committee (FOMC) has raised U.S.
interest rates three times this year and is widely expected to
do so again next month. According to the CME group's FedWatch
tool, the likelihood of the Fed raising rates by another 25
basis points in December is 75 percent.
"Whenever the U.S. Fed increases their policy rates, there
are tendencies for capital to go to safer assets, so emerging
markets usually suffer some sell-off," said AP Securities
analyst Rachelle Cruz.
The sharp retreat across the board on Friday put Southeast
Asian stocks on track for weekly losses, with the Philippines
heading for a 2.5 percent slump on the week, while
Singapore was set for an about 1.6 percent drop.
"Whether FOMC was the (de)motivation that derailed the
two-day winning streak in equities is perhaps inconclusive; but
it is notable that post-elections rally has fumbled," Mizuho
said in a note, referring to a rally in global equities after
the U.S. midterm election results.
Indonesian shares dropped 1.5 percent in the session
and were set to snap an eight-session winning streak. Consumer
goods company Unilever Indonesia fell as much as 4.3
percent to a two-month low.
Singapore stocks fell 1 percent and Thai shares
retreated 0.5 percent, both dragged down by losses in oil and
gas companies as oil markets on Friday remained weak because
rising supply and concerns of an economic slowdown pressured
prices, with U.S. crude now down by 20 percent since early
October.
Thailand's PTT PCL fell 1.5 percent in the session,
while Singapore's Keppel Corp shed nearly 2 percent.
Philippine shares fell as much as 1.2 percent, weighed down
by losses in industrials.
DMCI Holdings Inc fell more than 1 percent to its
lowest since Oct. 31, while JG Summit Holdings dropped
4 percent to its lowest in three weeks.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS AS AT 0359 GMT
Market Current Previous close Pct Move
Singapore 3068.09 3093.24 -0.81
Bangkok 1673.35 1681.73 -0.50
Manila 6968.03 7035.71 -0.96
Jakarta 5890.877 5976.806 -1.44
Kuala Lumpur 1709.1 1721.42 -0.72
Ho Chi Minh 919.6 926.28 -0.72
Change on year
Market Current End 2017 Pct Move
Singapore 3068.09 3402.92 -9.84
Bangkok 1673.35 1753.71 -4.58
Manila 6968.03 8558.42 -18.58
Jakarta 5890.877 6355.654 -7.31
Kuala Lumpur 1709.1 1796.81 -4.88
Ho Chi Minh 919.6 984.24 -6.57
(Reporting by Nikhil Subba; Editing by Amrutha Gayathri)