(Corrects to say gross domestic product "growth" in paragraph
4)
* Outbreak could slash global GDP by 0.1% to 0.4% - ADB
* Singapore share hit over 1-yr low
* Philippines, Thailand and Indonesia end about 2% lower
By Shruti Sonal
March 6 (Reuters) - Southeast Asian stock markets ended
sharply lower on Friday as the spread of coronavirus stoked
fears of a global economic slowdown, with Singapore shares
closing at their lowest in more than a year amid recession
concerns.
Broader Asian markets tracked Wall Street lower as deaths
from the virus rose in the United States and elsewhere, taking
the toll worldwide to more than 3,200.
"What was initially seen as a China-centric shock is now
certainly a global concern," said Westpac senior economist
Elliot Clarke.
The Asian Development Bank (ADB) said the outbreak could cut
global gross domestic product growth by 0.1% to 0.4% this year.
Adding to worries, S&P Global Ratings flagged a slowdown in
growth in the Asia-Pacific region to 4% in 2020, the lowest
since the global financial crisis, with Singapore and Thailand
being among the worst-hit. Financials across Southeast Asia were in the red, as further
rate cuts seemed likely in a bid to shield economies from the
impact of the outbreak.
"We are just at the start of the rate-cut cycle and entering
an uncharted territory. Banks, which are heavyweights in most
countries, are likely to face the brunt of the cuts and drag
down indexes," said Joel Ng, a Singapore-based analyst at KGI
Securities.
The Singapore benchmark index .STI edged over more than
1.7% lower to close at its lowest since October 2018 amid
mounting fears of a recession, which led ING analysts to cut
their forecast for annual economic growth to 0.3% from 1%.
"We think a couple of quarters of GDP contraction, both on a
yearly and quarterly basis, now look inevitable. Accordingly, we
see -0.3% and -0.5% year-on-year fall in the first and second
quarters, respectively", they added.
DBS Group Holdings DBSM.SI , Southeast Asia's largest
lender, shed more than 2% to hit its lowest level in more than a
year.
Thai stocks .SETI slipped nearly 2%, with index
heavyweight Siam Commercial Bank SCB.BK hitting its lowest
since July 2010.
The tourism-dependent economy's first quarter economic
performance will 'not be good' as the coronavirus outbreak hurts
activity, a government official said on Friday. The Philippine benchmark .PSI slid 1.7%, while Indonesian
equities .JKSE closed over 2% lower.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS AS at 0917 GMT
Change on the day
Market Current Previous close Pct Move
Singapore 2965.73 3018.27 -1.74
Bangkok 1367.57 1390.83 -1.67
Manila 6770.38 6884.77 -1.66
Jakarta 5498.54 5638.13 -2.48
Kuala Lumpur 1483.1 1491.03 -0.53
Ho Chi Minh 891.44 893.31 -0.21
Change so far in 2020
Market Current End 2019 Pct Move
Singapore 2965.73 3222.83 -7.98
Bangkok 1367.57 1579.84 -13.44
Manila 6770.38 7,815.26 -13.37
Jakarta 5498.54 6,299.54 -12.72
Kuala Lumpur 1483.1 1588.76 -6.65
Ho Chi Minh 891.44 960.99 -7.24