* Malaysia flags $800 million impact to tourism from virus
* Philippine central bank hints at bigger rate cut
* China's Jan-Feb industrial output contracts at sharpest
pace in
30 years
By Arpit Nayak
March 16 (Reuters) - Southeast Asian stock markets tumbled
on Monday, with Malaysia hitting a near ten-year low, as drastic
policy measures by the U.S. Federal Reserve did little to soothe
investor nerves over the lightning spread of the coronavirus.
The Fed on Sunday cut interest rates to near-zero levels and
pledged to expand its balance sheet by at least $700 billion in
the coming weeks, joining a global effort to combat the pandemic
which has forced stringent lockdowns and travel bans worldwide.
"Ironically, markets might have perceived the Fed's response
as panic, feeding into its own fears," Vishnu Varathan, a senior
economist at Mizuho Bank, said in a note.
"Despite whipping out the big guns (and jumping the gun) the
Fed appears to lack the silver bullets; falling short of being
the decisive backstop for markets."
Malaysia's benchmark index .KLSE shed 3.4% to hit a near
10-year low, led by losses in the financial sector. Malayan
Banking Bhd MBBM.KL hit a near three-and-a-half-year low.
The country's prime minister said on Friday the tourism
sector had likely suffered nearly $800 million in losses in the
first two months of 2020 due to the virus. Adding to woes, Southeast Asia's biggest trade partner,
China, saw industrial output contract at its sharpest pace in 30
years in the first two months of the year as the virus battered
its economy. Philippine shares .PSI recouped some losses after losing
as much as 7.6% in early trade, but stayed firmly in the red.
After the Fed slashed rates, the Philippine central bank
also hinted at a rate cut of more than 25 basis points at its
Thursday meeting. Singapore shares .STI dropped 3.4%, and were set for a
fourth straight session of losses, while Indonesian stocks
.JKSE dropped 4%, ahead of February trade data expected later
in the day. Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS as at GMT 3:24 AM
Change on the
day
Market Current Previous Pct Move
close
Singapore 2567.57 2634 -2.52
Bangkok 1094.52 1128.91 -3.05
Manila 5473.27 5793.94 -5.53
Jakarta 4773.426 4907.571 -2.73
Kuala Lumpur 1309.91 1344.75 -2.59
Ho Chi Minh 748.62 761.78 -1.73
Change so far
in 2020
Market Current End 2019 Pct Move
Singapore 2567.57 3222.83 -20.33
Bangkok 1094.52 1579.84 -30.72
Manila 5473.27 7,815.26 -29.97
Jakarta 4773.426 6,299.54 -24.23
Kuala Lumpur 1309.91 1588.76 -17.55
Ho Chi Minh 748.62 960.99 -22.10