* China imposes retaliatory tariffs on U.S. goods
* Vietnam bucks trend to end higher
By Nikhil Subba
May 14 (Reuters) - Most Southeast Asia stock markets closed
weaker on Tuesday, with the Philippine index .PSI leading the
decline, after China's counter tariffs on U.S. goods stoked an
escalation in the months-long trade conflict between Washington
and Beijing.
China on Monday said it would impose higher tariffs on $60
billion worth of U.S. goods, despite President Donald Trump's
warning to not retaliate against additional tariffs on Chinese
imports. "With the announcement of China's retaliation overnight that
tariffs on 2,493 U.S. products will be raised to between 5% and
25% from June 1, the risk-off tone has submerged most financial
markets," OCBC analysts said in a note to clients.
Beijing's retaliation was in response to sharp additional
tariffs imposed by Trump on $200 billion worth of Chinese goods
last Friday, which took effect while the two nations were
mid-way through trade talks that ultimately ended in a deadlock.
However, Trump's comment on Monday that he was optimistic
about resolving the months-long trade dispute provided some
salve to the markets. Philippine stocks, which resumed trading following an
election holiday, tumbled 1.2% to its lowest close since March
4, weighed down by consumer stocks.
The archipelagic nation held its mid-term elections on May
13, and unofficial results showed that President Rodrigo
Duterte's allies held the top spots. Indonesia's index .JKSE closed at a near six-month low,
pressured by basic material and healthcare stocks. Jakarta-based
tire manufacturer Multistrada Arah Sarana MASA.JK shed about
25% to close at a near six-month low.
Singapore's Straits Times index .STI closed weaker,
restrained by industrial and oil stocks. Conglomerate Jardine
Matheson Holdings JARD.SI , among the top drag on the index,
ended 1.5% lower.
Bucking the trend, Vietnam stocks .VNI ended the session
marginally higher, driven by utilities sector.
Analysts are of the view that Vietnam could benefit if the
U.S.-China trade war continues to drag.
Tech heavyweights such as South Korea's Samsung Electronics
005930.KS and LG Electronics 066570.KS , are seen shifting
their manufacturing facilities into Vietnam from China, to cut
costs and minimize tariffs. Asian Companies click; ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3223.71 3234.28 -0.33
Bangkok 1633.84 1640.13 -0.38
Manila 7646.66 7742.2 -1.23
Jakarta 6071.202 6135.396 -1.05
Kuala Lumpur 1599.19 1601.09 -0.12
Ho Chi Minh 965.34 958.54 0.71
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3223.71 3068.76 5.05
Bangkok 1633.84 1563.88 4.47
Manila 7646.66 7,466.02 2.42
Jakarta 6071.202 6,194.50 -1.99
Kuala Lumpur 1599.19 1690.58 -5.41
Ho Chi Minh 965.34 892.54 8.16