* Malaysia confirms bear market, hits near 10-year low
* Singapore ends lower for fourth consecutive session
* Thailand mulls shutdowns of public spaces
By Arpit Nayak
March 16 (Reuters) - Southeast Asian stock slumped on
Monday, with Malaysia confirming a bear market, as the Federal
Reserve's unexpected move to cut interest rates failed to quell
fears over the economic impact of the coronavirus pandemic.
The Fed unexpectedly slashed its key rate on Monday to near
zero and pledged to infuse liquidity into its bruising economy,
while New Zealand, Australia and Japan also announced a round of
monetary easing. Still, U.S. futures plunged to hit their down limit on
Monday as investors feared that the measures would not be
sufficient to cushion the coronavirus' global economic damage.
"There's not much that policymakers can do to prevent a
global recession developing over the coming months as the
economic effects of the coronavirus begin to bite," said Neil
Shearing, group chief economist at Capital Economics, in a note.
"History suggests that equity markets are only likely to
bottom out when it becomes clear that the flow of new cases of
the virus has peaked. Until this happens, we should expect stock
markets to remain under pressure."
Malaysian equities .KLSE plunged 4.8% to hit a near
10-year low and joined the rest of the region in bear market
territory.
A bear market is confirmed when an index closes 20% or more
below its most recent closing high.
Malayan Banking MBBM.KL tumbled 7.5%, while hospital
operator IHH Healthcare IHHH.KL fell 7.1%.
The country on Friday flagged a $800 million hit to tourism
due to the virus in the first two months of the year.
Philippine equities .PSI sank 7.9% in a curtailed trading
session. The exchange has shortened trading hours as authorities
placed the capital Manila under "community quarantine" for about
a month starting Sunday to keep local transmission of the virus
in check. Singaporean shares .STI eased 5.3% to end lower for a
fourth-straight session, with financials and industrials leading
declines.
Lender DBS Group Holdings DBSM.SI fell 4% and conglomerate
Jardine Matheson Holdings JARD.SI shed 7%.
Indonesian stocks .JKSE lost 4.4%, with financials and
consumer stocks being the biggest drags.
A Reuters polls suggests Bank Indonesia will likely make a
second cut to its key policy rate in the year later in the week.
The Thai index .SETI tumbled 7.3%, as the country plans to
shut schools, bars, theaters and other entertainment centres to
curb the virus' spread. Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
Change on the
day
Market Current Previous Pct Move
close
Singapore 2495.77 2634 -5.25
Bangkok 1046.08 1128.91 -7.34
Manila 5335.37 5793.94 -7.91
Jakarta 4690.657 4907.571 -4.42
Kuala Lumpur 1280.63 1344.75 -4.77
Ho Chi Minh 747.86 761.78 -1.83
Change so far
in 2020
Market Current End 2019 Pct Move
Singapore 2495.77 3222.83 -22.41
Bangkok 1046.08 1579.84 -33.38
Manila 5335.37 7,815.26 -31.73
Jakarta 4690.657 6,299.54 -25.54
Kuala Lumpur 1280.63 1588.76 -19.39
Ho Chi Minh 747.86 960.99 -22.18