SE Asia Stocks-Most slump; Indonesia falls over 2 pct
* Higher U.S. Treasury yields hurt sentiment
* Indonesia extends losses into 4th session
* Philippines hits 3-month low
By Niyati Shetty
Oct 4 (Reuters) - Most Southeast Asian stock markets closed
lower on Thursday as investors trimmed their exposure to riskier
assets after strong U.S. economic data drove up Treasury yields
and increased the likelihood of a rate hike in the world's
largest economy.
A survey on activity in the United States services sector
recorded its highest reading since August 1997, driving up U.S.
Treasury yields and the dollar, and sparking speculation that
Friday's employment data could also surprise.
Shares of the region's biggest economy, Indonesia, hit a
one-month low during the day, while Philippine shares fell to
their lowest level in over three months.
Higher U.S. yields is not encouraging for emerging markets
as they tend to draw away much-needed foreign funds while
pressuring local currencies.
Meanwhile, on Wednesday, Federal Reserve Chairman Jerome
Powell said that the central bank may raise interest rates above
an estimated "neutral" setting as the "remarkably positive" U.S.
economy continues to grow.
The Fed is expected to hike rates again in December, after
raising it last week for the third time this year.
Indonesian shares slid 2.1 percent during the day,
extending losses into a fourth straight session.
The index was weighed down by financials and consumer
stocks, with Unilever Indonesia falling 4.1 percent
and Bank Central Asia slipping 1.4 percent.
Philippine benchmark index skidded 1.6 percent as
higher U.S. yields are expected to aggravate the country's
growing inflationary concerns.
"Rising yields abroad furthers the inflationary pressure on
the Philippines because imports, as a substitute for local
supplies, would be more expensive for us," said Jose Vistan,
Research Head at AB Capital Securities in Manila.
The country's September inflation data, which is due on
Friday, is expected to rise close to 7 percent, keeping pressure
on the central bank to further raise interest rates.
Ayala Land slumped 4.7 percent and JG Summit
Holdings slid 5.1 percent.
Singapore shares declined 1.1 percent, dragged down
by industrial and financial stocks. Conglomerate Jardine
Matheson Holdings slid 2.9 percent and DBS Group
Holdings lost 0.7 percent.
Thai index was down 0.7 percent, hurt by energy
stocks PTT PCL and PTT Exploration and Production PCL
, down 1.4 percent and 2.2 percent, respectively.
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SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3231.59 3267.4 -1.10
Bangkok 1729.4 1741.96 -0.72
Manila 7093.34 7210.87 -1.63
Jakarta 5756.619 5867.737 -1.89
Kuala Lumpur 1790.11 1796.3 -0.34
Ho Chi Minh 1023.62 1020.4 0.32
Change on year
Market Current End 2017 Pct Move
Singapore 3231.59 3402.92 -5.03
Bangkok 1729.4 1753.71 -1.39
Manila 7093.34 8558.42 -17.12
Jakarta 5756.619 6355.654 -9.43
Kuala Lumpur 1790.11 1796.81 -0.37
Ho Chi Minh 1023.62 984.24 4.00
(Reporting by Niyati Shetty in Bengaluru; Editing by Vyas
Mohan)