SE Asia Stocks-Fall as Trump's China tariff threat rattles market
* Thailand hits six-week low, down for second session * Singapore near 2-month low ahead of business activity data By Anushka Trivedi Aug 2 (Reuters) - Southeast Asian stock markets fell on Friday after U.S. President Donald Trump proposed a 10% tariff on remaining $300 billion worth of Chinese imports from next month, intensifying the year-long trade war between the world's two largest economies. If implemented, this move would extend trade duties to nearly all of China's exports to the United States and mark a sudden end to a temporary truce in the trade row that has hampered world growth and disrupted global supply chains. "Markets are reeling after Trump expressed his frustration with China's stalling techniques... If there was any doubt that the U.S.-China trade negotiations are drifting further apart, this latest trade escalation puts that debate to rest," said Stephen Innes, managing partner at VM Markets Pte. Trump's surprise announcement comes hot on the heels of two-day trade talks in Shanghai that ended without any significant progress. Thai stocks fell 1.3% to six-week lows, extending losses into a second session, as a plunge in oil prices overnight pressured energy players. Oil and gas major PTT Exploration and Production PCL slumped 4.1%. Philippine shares stumbled 1.1%, hit by losses in financial and real estate stocks. Property developer SM Prime Holdings Inc and lender BDO Unibank Inc slipped 2.5% and 1%, respectively. Singapore shares slipped for a third straight session and hit their lowest in nearly two months, ahead of July business activity data. The data is expected to disappoint as the electronic hub battles a global tech slump and the repercussions of the U.S.-China trade tiff, according to a note from ING. In other news, lender Oversea-Chinese Banking Corp Ltd reported steady second-quarter earnings, while profit jumped at rival United Overseas Bank Ltd with improved margins and loan growth providing support in a slowing economy. Analysts, however, expect Singapore banks' performance to weaken as a decline in interest rates and a faltering economy put pressure on the sector's profit and revenue growth after three strong years. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0348 GMT Market Current Previous close Pct Move Singapore 3271.21 3291.75 -0.62 Bangkok 1676.92 1699.75 -1.34 Manila 8017.84 8098.16 -0.99 Jakarta 6330.305 6381.542 -0.80 Kuala Lumpur 1626.52 1639.07 -0.77 Ho Chi Minh 986.69 997.39 -1.07 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3271.21 3068.76 6.60 Bangkok 1676.92 1563.88 7.23 Manila 8017.84 7,466.02 7.39 Jakarta 6330.305 6,194.50 2.19 Kuala Lumpur 1626.52 1690.58 -3.79 Ho Chi Minh 986.69 892.54 10.55 (Reporting by Anushka Trivedi in Bengaluru; Editing by Subhranshu Sahu)
