* Vietnam hits lowest since Oct. 2017
* Singapore, Indonesia and Thailand fall over 1% each
* Thailand cancels visa on arrivals for 18 countries
By Shruti Sonal
March 11 (Reuters) - Vietnam shares tumbled more than 3% on
Wednesday as coronavirus cases in the country spiked, while most
other Southeast Asian markets ended lower amid growing
scepticism about Washington's stimulus measures to limit the
economic impact of the outbreak.
The White House and Congress negotiated measures overnight
to bolster the U.S. economy and the Bank of England cut interest
rates to stave off a recession triggered by the fast-spreading
virus. However, investors wondered whether the efforts would be
enough to cushion the economic impact of the virus, which has
disrupted businesses globally, while denting consumer
confidence.
"At present, we believe a global economic slowdown is in
play, with a growing chance that a global recession could
materialise if economies facing a major disruption do not
promptly implement fiscal stimulus to offset reduced demand,"
ANZ Research analysts said in a note.
The Vietnam benchmark .VNI hit its lowest since October
2017, with carrier Vietjet Aviation JSC VJC.HM slumping 7%, as
the number of infected patients in the country surged following
the reintroduction of the virus via a flight from Europe.
Thai equities .SETI slumped 1.7% as tourism stocks took a
beating after the country cancelled visa on arrival for 18
countries to limit virus spread. Meanwhile, Singapore stocks .STI slipped 1.7% as well on
concerns of a recession in the trade-reliant economy after a
central bank survey showed that economists had more than halved
their growth forecasts this year. Fears over the epidemic remained as the number of people
infected topped 116,000 across the world, although China lowered
emergency response levels to the coronavirus as infections
retreat. Indonesian equities fell 1.3% after the country reported its
first death from the virus and its central bank governor said
Bank Indonesia was likely to revise lower its outlook for 2020
economic growth at its next policy meeting. Bucking the trend, Malaysian benchmark .KLSE gained about
1% in its best intraday session since June 2018.
Prime Minister Muhyiddin Yassin said the cabinet had agreed
to set up an economic action council to tackle fall in oil
prices and virus outbreak. Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 2783.72 2832.54 -1.72
Bangkok 1249.89 1271.25 -1.68
Manila 6353.26 6318.38 0.55
Jakarta 5154.105 5220.826 -1.28
Kuala Lumpur 1443.83 1430.47 0.93
Ho Chi Minh 811.35 837.5 -3.12
Change so far in 2020
Market Current End 2019 Pct Move
Singapore 2783.72 3222.83 -13.62
Bangkok 1249.89 1579.84 -20.89
Manila 6353.26 7,815.26 -18.71
Jakarta 5154.105 6,299.54 -18.18
Kuala Lumpur 1443.83 1588.76 -9.12
Ho Chi Minh 811.35 960.99 -15.57