* China yet to retaliate to Trump's tariff hike
* Singapore is top drag in the region
* Vietnam ends marginally higher
By Nikhil Subba
May 13 (Reuters) - Most Southeast Asian stock markets closed
lower on Monday, as investors took a cautious stance fearing
flare-up in the Sino-U.S. trade negotiations, while anxiety over
a possible retaliation by Beijing kept sentiment fragile.
Until last week, there were expectations that U.S. President
Donald Trump and his Chinese counterpart Xi Jinping would sign a
trade deal at the summit. However, the trade talks suffered a
major setback last week when China proposed extensive revisions
to a draft agreement. "Tensions appear to have ratcheted up with Trump threatening
to impose tariffs on all Chinese imports if a deal is not
concluded within a month. Accordingly, the next few weeks would
be volatile across all asset classes as the markets brace for
the possibility of a no-deal," DBS Group analysts said in a
note.
Trade tensions between two of the world's leading economies
worsened last week after Trump raised tariffs on $200 billion
worth of Chinese goods, and markets have been anxious as Beijing
vowed to take counter measures.
Singapore's Straits Times index .STI , whose stocks are
most exposed to global trade, was the biggest decliner in the
regional market.
The benchmark ended the session 1.2% lower, its weakest
since April 1, pressured by financial services and consumer
stocks.
DBS Group DBSM.SI , Southeast Asia's largest lender, closed
2% down at its lowest since April 2, while conglomerate Jardine
Cycle & Carriage Ltd JCYC.SI dropped 2.2% to its lowest close
since April 15.
The Malaysian index .KLSE , which languished at its lowest
close since Jan. 21, 2016, dropped 1.9% ever since Trump
announced his tariff hike plan on May 6.
The Indonesian benchmark .JKSE dropped about 1% to its
weakest since Dec 26, 2018, dragged lower by property developer
Duta Pertiwi's DUTI.JK 20% plunge and frozen seafood products
maker Sekar Bumi's SKBM.JK nearly 17% tumble.
Bucking the trend, Vietnamese stocks .VNI advanced higher,
helped by a rally in utilities and technology stocks.
The Philippine market was closed on Monday as the
archipelago nation holds its mid-term elections.
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SOUTHEAST ASIAN STOCK MARKETS
Change on day
Market Current Previous Pct Move
Close
Singapore 3236.92 3273.5 -1.20
Bangkok 1637.94 1648.69 -0.52
Jakarta 6135.396 6209.118 -1.19
Kuala Lumpur 1601.09 1610.27 -0.57
Ho Chi Minh 958.54 952.55 0.63
Change on year
Market Current End 2017 Pct Move
Singapore 3236.92 3068.76 5.39
Bangkok 1637.94 1563.88 4.88
Manila 7742.2 8558.42 -9.54
Jakarta 6135.396 6194.498 -0.95
Kuala Lumpur 1601.09 1690.58 -5.29
Ho Chi Minh 958.54 984.24 -2.61