* Federal Reserve will conclude two-day meet later in the
day
* Malaysia at 1-week low, dragged by consumer stocks
* Thai index leads declines as energy stocks tumble
By Anushka Trivedi
Sept 18 (Reuters) - Most Southeast Asian stock markets were
tepid on Wednesday amid cautious mood as investors awaited a
widely expected interest rate cut by the U.S. Federal Reserve,
while a slew of regional central bank meetings kept a lid on
risk appetite.
The U.S. central bank will conclude a two-day policy review
on Wednesday, with markets mostly pricing in a quarter-point
cut, but a show of strong manufacturing output for August on
Tuesday forced investors to walk back some of their dovish
ambitions. Federal funds futures implied late on Tuesday that traders
saw about a 51% chance of Fed easing the key borrowing costs.
"In the absence of any surprise in the rate move, investors
will be looking at the message from the FOMC in the statement
and subsequent press conference. The risk probably sits once
again with a hawkish cut and if this comes to fruition, then
expect stock markets to take a hit along with risk trades
overall," said Nick Twidale, director and co-founder, Xchainge.
Markets have largely pinned their hopes on central banks to
cut their lending rates, with the Indonesian central bank set to
meet on Thursday, while the People's Bank of China is slated to
decide on its benchmark rates later this week.
Leading declines, Thai shares .SETI came under pressure as
a slump in oil prices hurt energy stocks. O/R
Oil and gas majors PTT PCL PTT.BK and PTT Exploration and
Production PTTEP.BK dropped 3.2% and 3.9%, respectively.
Malaysian stocks .KLSE hit a one-week low, dragged by
consumer stocks. Leading palm oil producers Kuala Lumpur Kepong
Bhd KLKK.KL and Sime Darby Plantation Bhd SIPL.KL lost 1.1%
and 1.4%, respectively.
The Philippine bourse .PSI extended losses into a second
session following local reports https://businessmirror.com.ph/2019/09/18/house-sets-probe-into-pogo-operations
of a potential shutdown for the Philippines Offshore Gaming
Operators.
Casino operator Bloomberry Resorts Corp BLOOM.PS , among
the top drags on the benchmark, slipped as much as 2.5%.
Meanwhile, Indonesian stocks .JKSE advanced on the back of
consumer stocks. Top cigarette maker Hanjaya Mandala Sampoerna
HMSP.JK rebounded after diving nearly 20% earlier this week
after the government announced steep price and tax hikes.
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SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3171.26 3183 -0.37
Bangkok 1655.09 1663.93 -0.53
Manila 7901.52 7932.23 -0.39
Jakarta 6265.166 6236.69 0.46
Kuala Lumpur 1596.46 1604.3 -0.49
Ho Chi Minh 995.74 996.74 -0.10
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3171.26 3068.76 3.34
Bangkok 1655.09 1563.88 5.83
Manila 7901.52 7,466.02 5.83
Jakarta 6265.166 6,194.50 1.14
Kuala Lumpur 1596.46 1690.58 -5.57
Ho Chi Minh 995.74 892.54 11.56