SE Asia Stocks-Drop as fresh tariffs stoke equity sell-off
* 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 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 was down 1.9%, while gas explorer and supplier PTT PCL lost 2.4%. Singapore's benchmark index touched its lowest in almost eight months, with heavyweights such as DBS Group Holdings and Jardine Matheson Holdings 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 down 1% to its lowest in more than a week. Malayan banking Bhd slipped 1%, while Public Bank Bhd shed 0.6%. Indonesian stocks touched their lowest in nearly three weeks, dragged by losses in financial and consumer sectors, with Bank Central Asia losing 1% and consumer goods company Unilever Indonesia falling 0.8%. An index of Indonesia's 45 most liquid stocks was down 1.3%. The Philippines index was closed for a public holiday. For Asian Companies click; 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 (Reporting by Soumyajit Saha, Editing by Sherry Jacob-Phillips)
