Advertisement

SE Asia Stocks-Fall as dismal U.S. manufacturing data sparks slowdown fears

* Trading volumes low due to China holiday * Singapore, Philippines fall about 1% each By Shreya Mariam Job Oct 2 (Reuters) - Southeast Asian stock markets fell on Wednesday, as a slump in U.S. manufacturing activity renewed fears of a global growth slowdown and underscored the damaging effects of the prolonged trade war with China. U.S. manufacturing activity tumbled to a more than 10-year low in September as lingering trade tensions weighed on exports. "The slowdown in the U.S. is probably having a larger impact on those countries that are major trade players," said Joel Ng, an analyst at KGI securities. "The moves are a bit more exaggerated because of lower liquidity." Trading volumes were low across Southeast Asian markets due to the week-long holiday in China for the National Day. Singapore stocks shed 1%, with financials accounting for most of the losses. The trade-reliant city state has been hit hard by the prolonged Sino-U.S. trade war, with a flood of weak data including the dismal August manufacturing figures sparking fears of a recession. Shares of top lender DBS Group Holdings dropped 1.3%, while those of United Overseas Bank Ltd shed 1.2%. Philippine stocks dropped 0.9% and were headed for a fourth consecutive session of losses. Property and financial stocks were hit the most, with SM Prime Holdings and BDO Unibank Inc shedding 1.6% and 1.5%, respectively. This came after the central bank governor said on Tuesday banning online gambling would have little impact on the economy. The country has initiated a study into the economic impact of halting online gambling after China urged Manila to outlaw the cross-border activities it says pose money-laundering risks. These firms have lifted property demand and retail spending by drawing visitors from China who work for these online gambling operators. Malaysian stocks dipped 0.5% on the back of financials and telecoms, with Public Bank Bhd and Axiata Group Bhd shedding 0.5% each. Thai stocks fell 0.6%, with top listed oil explorer PTT PCL losing 0.6%. The company along with Gulf Energy Development Pcl is set to build a 40.9 billion baht ($1.34 billion) gas terminal and port on the country's east coast. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS as at 0344 GMT Change on the day Market Current Previous close Pct Move Singapore 3116.23 3146.03 -0.95 Bangkok 1614.33 1624.09 -0.60 Manila 7669.59 7739.86 -0.91 Jakarta 6116.669 6138.25 -0.35 Kuala Lumpur 1580.8 1589.44 -0.54 Ho Chi Minh 997.47 999.59 -0.21 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3116.23 3068.76 1.55 Bangkok 1614.33 1563.88 3.23 Manila 7669.59 7,466.02 2.73 Jakarta 6116.669 6,194.50 -1.26 Kuala Lumpur 1580.8 1690.58 -6.49 Ho Chi Minh 997.47 892.54 11.76 ($1 = 30.6200 baht) (Reporting by Shreya Mariam Job in Bengaluru; Editing by Subhranshu Sahu)