SE Asia Stocks-Fall as Fed rate hike signals get louder

By Aparajita Saxena

Aug 29 (Reuters) - Most Southeast Asian stock markets closed

lower on Monday after comments from U.S. Federal Reserve Chair

Janet Yellen hinting at an interest rate hike weighed on

investor sentiment.

At the Fed's annual gathering for global central bankers in

Jackson Hole, Wyoming, Yellen said the case for a rate hike has

strengthened in recent months as the labour market and economy

improved.

While she gave no hints on the timing of a hike, Fed Vice

Chair Stanley Fischer said Yellen's speech was consistent with

expectations for possible rate increases this year.

Fischer said the August nonfarm payrolls report due on

Friday was likely to be key to the decision over a hike in the

near term.

Markets will generally remain cautious before the September

meeting, and will also take cues from the U.S. jobs data, said

Ong Kian Lin at RHB Securities Singapore Pte Ltd.

"The most direct impact of the interest rate hike for

emerging markets is on the local currency versus the dollar,"

Ong said.

"Once the dollar strengthens, it will impact oil producing

countries that rely on the dollar movement for inputs."

Indonesian shares underperformed other markets in

the region and posted their worst intraday fall in a month

before closing down 1.3 percent. Utilities led the fall with

Perusahaan Gas Negara (Persero) Tbk PT declining 4.48

percent.

Singapore shares closed down 1 percent, with oil and

gas stocks losing ground after global crude prices fell on

rising Iraq output and a stronger dollar.

Oil rig builders Keppel Corp and Sembcorp

Industries were among the biggest losers.

Vietnam shares ended 0.25 percent higher after rising

as much as 1.78 percent earlier in the session to their highest

in more than a month.

"We believe that in the coming week, (Vietnam) market is

likely to recognise positive correction and cumulation,"

Vietcombank Securities said in a note.

Malaysia and Thailand ended slightly lower,

while the Philippine stock market was closed for a

holiday.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS

Change on day

Market Current Previous close Pct Move

Singapore 2829.43 2857.65 -0.99

Bangkok 1544.15 1549.41 -0.34

Jakarta 5370.764 5438.831 -1.25

Kuala Lumpur 1681.6 1683.09 -0.09

Ho Chi Minh 669.44 667.75 0.25

Change on year

Market Current End 2015 Pct Move

Singapore 2829.43 2882.73 -1.85

Bangkok 1544.15 1288.02 19.89

Jakarta 5370.764 4593.008 16.93

Kuala Lumpur 1681.6 1692.51 -0.64

Ho Chi Minh 669.44 579.03 15.61

(Reporting by Aparajita Saxena in Bengaluru; Editing by

Subhranshu Sahu)