* Thai benchmark index dives 2%
* Singapore touches its lowest in nearly eight months
* Losses in banking stocks dent the Malaysian index
By Soumyajit Saha
Aug 26 (Reuters) - Southeast Asian stock markets dropped on
Monday, tracking a broader global sell-off, with the Thai index
.SETI losing the most as an escalation in the tit-for-tat
Sino-U.S. trade dispute over the weekend battered risk appetite.
U.S. President Donald Trump raised tariffs on about $500
billion worth of Chinese goods by 5% on Friday, in response to
China's imposition of as much as an extra 10% on existing
tariffs against U.S. goods worth about $75 billion. Asian shares sank as the latest move in the trade war shook
confidence in the world economy and sent investors steaming to
the safe harbours of sovereign bonds and gold, while slugging
emerging market currencies. The latest trade salvo will adversely affect China's
supply-chain partners and would add to warnings of "more acute
exports pain in Asia with attendant downside to growth", Mizuho
Bank said in a note to clients.
China is Southeast Asia's biggest trading partner.
"Quantifying downside risks is challenging. Demand for
exports and growth outlook are further dimmed. Correspondingly,
recessions risks are magnified," the note added.
Thai stocks retreated from previous session's gains to dive
2%, marking their worst session since Dec. 25, 2018.
The index was dragged lower by in energy and financial
sectors. Lender Kasikornbank PCL KBANK.BK was down 1.9%, while
gas explorer and supplier PTT PCL PTT.BK lost 2.4%.
Singapore's benchmark index .STI touched its lowest in
almost eight months, with heavyweights such as DBS Group
Holdings DBSM.SI and Jardine Matheson Holdings JARD.SI
losing 1.5% and 1.8%, respectively.
The city-state's July industrial production data, slated for
release later in the day, will be widely watched after poor
inflation figures last week prompted a downgrade in the official
full-year forecast.
Banking stocks pushed the Malaysian benchmark index .KLSE
down 1% to its lowest in more than a week.
Malayan banking Bhd MBBM.KL slipped 1%, while Public Bank
Bhd PUBM.KL shed 0.6%.
Indonesian stocks .JKSE touched their lowest in nearly
three weeks, dragged by losses in financial and consumer
sectors, with Bank Central Asia BBCA.JK losing 1% and consumer
goods company Unilever Indonesia UNVR.JK falling 0.8%.
An index of Indonesia's 45 most liquid stocks .JKLQ45 was
down 1.3%.
The Philippines index was closed for a public holiday.
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0407 GMT
STOCK MARKETS
Change on the day
Market Current Previous close Pct Move
Singapore 3066.11 3110.35 -1.42
Bangkok 1611.67 1646.68 -2.13
Jakarta 6198.369 6255.597 -0.91
Kuala Lumpur 1591.99 1609.33 -1.08
Ho Chi Minh 980.94 992.45 -1.16
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3066.11 3068.76 -0.09
Bangkok 1611.67 1563.88 3.06
Manila 7889.41 7,466.02 5.67
Jakarta 6198.369 6,194.50 0.06
Kuala Lumpur 1591.99 1690.58 -5.83
Ho Chi Minh 980.94 892.54 9.90