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SE Asia Stocks-Most decline as tech war amplifies Sino-U.S. tension

Published 05/23/2019, 12:17 PM
Updated 05/23/2019, 12:20 PM
SE Asia Stocks-Most decline as tech war amplifies Sino-U.S. tension
STI
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JKSE
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KLSE
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PCGB
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SETI
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PSI
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JGS
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MBT
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PTTEP
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PTTGC
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002415
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* Singapore hits over 4-mth low; April inflation data due
* Indonesia up 1.5%; post-election protesters disperse

By Niyati Shetty
May 23 (Reuters) - Most Southeast Asian stock markets
declined on Thursday, amid continued Sino-U.S. trade tensions,
while an escalating technology cold war between the nations
piled on.
Reuters on Wednesday reported that the U.S. administration
is considering Huawei-like sanctions on Chinese video
surveillance firm Hikvision 002415.SZ over the country's
treatment of its Uighur Muslim minority. The bitter tariff dispute between the world's largest
economies intensified last week after the United States put
Huawei Technologies HWT.UL on a trade blacklist, effectively
banning U.S. firms from doing business with the Chinese telecom
giant.
Adding to unlikelihood of a speedy closure to the tariff
spat, U.S. Treasury Secretary Steven Mnuchin on Wednesday said
it would be at least a month before the U.S. would enact
proposed tariffs on $300 billion in Chinese imports.
The Philippine bourse .PSI fell up to 0.7% as financial
and industrial stocks weighed on the main board.
Conglomerate JG Summit Holdings Inc JGS.PS lost 3.3%, and
Metropolitan Bank and Trust Co MBT.PS fell 2.6%.
While risk sentiment had improved in the region during the
first few months of the year after Sino-U.S. tensions seemed to
be diminishing, the deadlock in trade talks since the start of
May has caused disarray in the markets.
"Asian markets may see some modest erosion today, while
attempting to speculate on the endgame for U.S.-China trade
tensions," OCBC Bank said in a note.
Asian economies continued to feel the repercussions of
slowing global growth, which was reflected in the dismal growth
data released by Singapore and Thailand earlier this week.
Thai equities .SETI slipped 0.5%, hurt by energy and
materials sectors. PTT Global Chemical PCL PTTGC.BK and PTT
Exploration and Production PCL PTTEP.BK declined 2.8% and
1.2%, respectively.
The Singapore index .STI lost as much as 1%, hitting a
more than 4-month low, ahead of inflation data due later in the
day.
A Reuters poll showed the central bank's core inflation
measure likely rose 1.3% in April from a year earlier, down
slightly from the 1.4% rise in the prior month. Malaysian stocks .KLSE fell up to 0.9%, a day after
markets returned from a holiday. Petronas Chemical Group Bhd
PCGB.KL dropped 5.9%.
The Indonesian index .JKSE was the sole gainer, rising
1.5%, as calm returned to the streets of central Jakarta on
Thursday after a second night of clashes between security forces
and protesters angry over the outcome of last month's election.
Earlier this week, the election commission had confirmed the
victory of incumbent President Joko Widodo over challenger,
ex-general Prabowo Subianto.

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SOUTHEAST ASIAN STOCK MARKETS AS AT 0407 GMT

Market Current Previous close Pct Move
Singapore 3169.62 3183.14 -0.42
Bangkok 1622.73 1626.91 -0.26
Manila 7772.7 7815.07 -0.54
Jakarta 6027.918 5939.636 1.49
Kuala Lumpur 1602.35 1603.74 -0.09
Ho Chi Minh 980.36 983.78 -0.35

Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3169.62 3068.76 3.29
Bangkok 1622.73 1563.88 3.76
Manila 7772.7 7,466.02 4.11
Jakarta 6027.918 6,194.50 -2.69
Kuala Lumpur 1602.35 1690.58 -5.22
Ho Chi Minh 980.36 892.54 9.84

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