Advertisement

SE Asia Stocks-Markets drop on profit-booking; Philippines leads declines

* Investors watch for signs of thaw in the U.S.-China trade war * Indonesia set to snap eight sessions of gains * Singapore marks worst session in two weeks By Sameer Manekar Oct 23 (Reuters) - Southeast Asian stock markets dropped on Wednesday, with the Philippines leading declines, on prolonged U.S.-China trade spat and as investors locked in profits following a recent rally. Investors are also closely watching for signs of a thaw in the U.S.-China trade war, which has cast a shadow over financial markets and global economic growth. An exclusive Reuters report that one of the U.S. advisers to U.S. President Donald Trump on trade talks with China will leave government could introduce some uncertainty about future trade talks. Shares in Singapore, which is highly vulnerable to headlines coming out of the trade talks, declined with the Straits Times index marking its worst session in two weeks. "Blue-chips suffered profit-taking activities after big gains over the last two days," CMC Singapore Markets said in a note. Financials and industrial sectors dragged the Singapore index lower, with City Developments and Jardine Matheson Holdings shedding 1.7% and 2.5%, respectively. "A healthy correction, however, does not change our view that emerging markets are on their upward trajectory to narrow the valuation gap with developed markets," the note cited. Leading declines in the region, the Philippine bourse slipped 0.7%, dented by losses in financials and consumer firms. "Investors are still on the sidelines waiting for the partial trade deal or the potential phase one deal between the United States and China," Rachelle Cruz, analyst at AP Securities said, adding that markets are seeing a correction after the previous sessions' gains. BDO Unibank and SM Investments Corp were among the biggest losers, slipping 1.7% and 1.2%, respectively. The Indonesian market was set to snap an eight-session winning streak, with consumer and healthcare sectors falling the most. Auto manufacturer Astra International and pharma company Kalbe Farma lost 1.5% and 1.8%, respectively. Bank Indonesia on Thursday is expected to cut its benchmark rate for a fourth consecutive month to support the economy, a Reuters poll showed. Malaysian shares retreated from previous session's gains to drop 0.6%, with Hong Leong Financial Group and Sime Darby Plantation slipping 2.6% and 1.9%, respectively. The country's inflation rose at a slower pace than expected in September from a year earlier, data showed on Wednesday. In May, Bank Negara Malaysia cut its key interest rate for the first time since 2016, amid low inflation and concerns over slowing growth. Thailand markets were closed for a holiday. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS AT 0438 GMT Market Current Previous close Pct Move Singapore 3139.99 3160.67 -0.65 Manila 7898.03 7955.24 -0.72 Jakarta 6217.939 6225.497 -0.12 Kuala Lumpur 1564.92 1574.09 -0.58 Ho Chi Minh 986.23 987.19 -0.10 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3139.99 3068.76 2.32 Bangkok 1631.46 1563.88 4.32 Manila 7898.03 7,466.02 5.79 Jakarta 6217.939 6,194.50 0.38 Kuala Lumpur 1564.92 1690.58 -7.43 Ho Chi Minh 986.23 892.54 10.50 (Reporting by Sameer Manekar in Bengaluru, Editing by Sherry Jacob-Phillips)