* U.S.-China Phase 1 trade deal to be signed later on
Wednesday
* Indonesia trade deficit in Dec likely narrowed - Reuters
poll
* Malaysia extends losses into fourth session
By Sameer Manekar
Jan 15 (Reuters) - Southeast Asian stock markets dropped on
Wednesday as broader confidence was dented ahead of the signing
of an initial Sino-U.S. trade deal following comments from
Washington that tariffs on Chinese goods would remain in place
for now.
U.S. Treasury Secretary Steven Mnuchin said on Tuesday that
the United States would maintain tariffs on Chinese goods until
the completion of a second phase of a U.S.-China trade
agreement. U.S. President Donald Trump is slated to sign the Phase 1
trade agreement with Chinese Vice Premier Liu He at the White
House later in the day.
"The limited nature of this (Phase 1) deal begs the question
of prospects for further progress on lowering trade barriers.
And reports that no further tariff reductions are likely until
after November's U.S. Presidential elections sets the stage for
"morning after" disappointment," Mizuho Bank said in a note.
Signs of goodwill came from both sides as the U.S. Treasury
Department dropped its designation of China as a currency
manipulator on Monday, while Beijing pledged to ramp up its buys
from the United States as part of the trade truce, according to
a source.
In Southeast Asia, the Philippine bourse .PSI dropped the
most as a volcanic eruption continued to darken the mood.
Investors are uncertain regarding the Taal volcano eruption
and its impact on the country's gross domestic product, since
there is no exact prediction as to when the volcano might erupt,
Rachelle Cruz, analyst at AP Securities said.
Financial and consumer firms were the top drags, with Bank
of the Philippine Islands BPI.PS and SM Investments Corp
SM.PS losing 1.8% and 1.1%, respectively.
Singapore's benchmark index .STI slipped 0.4%, with
Jardine Strategic Holdings JSH.SI and Wilmar International
WLIL.SI dropping 1.5% and 2.3%.
Malaysian equities .KLSE extended losses into a fourth
session, with Sime Darby Plantation SIPL.KL and Digi.Com Bhd
DSOM.KL slipping 0.8% and 0.9%, respectively.
Palm oil futures in Malaysia fell by their most in eight
months on Tuesday. India, world's largest buyer of edible oils,
has halted palm oil imports from Malaysia, the second-largest
global producer of palm oil. POI/
Indonesian shares .JKSE were set to snap four sessions of
gains, with Telekomunikasi Indonesia TLKM.JK and United
Tractors UNTR.JK losing 0.8% and 2.8%, respectively.
Trade deficit in Southeast Asia's largest economy is likely
to have narrowed in December, while exports are expected to have
shrunk 3.03% on-year in the month, a Reuters poll showed.
Thai stocks .SETI were also poised to snap a four-session
winning streak.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS 0400 GMT
Market Current Previous close Pct Move
Singapore 3257.96 3270.54 -0.38
Bangkok 1586.05 1586.9 -0.05
Manila 7735.14 7793.25 -0.75
Jakarta 6318.242 6325.406 -0.11
Kuala Lumpur 1576.41 1580.6 -0.27
Ho Chi Minh 966.63 967 -0.04
Change so far in 2020
Market Current End 2019 Pct Move
Singapore 3257.96 3222.83 1.09
Bangkok 1586.05 1579.84 0.39
Manila 7735.14 7,815.26 -1.03
Jakarta 6318.242 6,299.54 0.30
Kuala Lumpur 1576.41 1588.76 -0.78
Ho Chi Minh 966.63 960.99 0.59