SE Asia Stocks-Most end lower on fresh strain in U.S.-China trade war
* China imposes retaliatory tariffs on U.S. goods * Vietnam bucks trend to end higher By Nikhil Subba May 14 (Reuters) - Most Southeast Asia stock markets closed weaker on Tuesday, with the Philippine index leading the decline, after China's counter tariffs on U.S. goods stoked an escalation in the months-long trade conflict between Washington and Beijing. China on Monday said it would impose higher tariffs on $60 billion worth of U.S. goods, despite President Donald Trump's warning to not retaliate against additional tariffs on Chinese imports. "With the announcement of China's retaliation overnight that tariffs on 2,493 U.S. products will be raised to between 5% and 25% from June 1, the risk-off tone has submerged most financial markets," OCBC analysts said in a note to clients. Beijing's retaliation was in response to sharp additional tariffs imposed by Trump on $200 billion worth of Chinese goods last Friday, which took effect while the two nations were mid-way through trade talks that ultimately ended in a deadlock. However, Trump's comment on Monday that he was optimistic about resolving the months-long trade dispute provided some salve to the markets. Philippine stocks, which resumed trading following an election holiday, tumbled 1.2% to its lowest close since March 4, weighed down by consumer stocks. The archipelagic nation held its mid-term elections on May 13, and unofficial results showed that President Rodrigo Duterte's allies held the top spots. Indonesia's index closed at a near six-month low, pressured by basic material and healthcare stocks. Jakarta-based tire manufacturer Multistrada Arah Sarana shed about 25% to close at a near six-month low. Singapore's Straits Times index closed weaker, restrained by industrial and oil stocks. Conglomerate Jardine Matheson Holdings, among the top drag on the index, ended 1.5% lower. Bucking the trend, Vietnam stocks ended the session marginally higher, driven by utilities sector. Analysts are of the view that Vietnam could benefit if the U.S.-China trade war continues to drag. Tech heavyweights such as South Korea's Samsung Electronics and LG Electronics, are seen shifting their manufacturing facilities into Vietnam from China, to cut costs and minimize tariffs. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS Change on the day Market Current Previous close Pct Move Singapore 3223.71 3234.28 -0.33 Bangkok 1633.84 1640.13 -0.38 Manila 7646.66 7742.2 -1.23 Jakarta 6071.202 6135.396 -1.05 Kuala Lumpur 1599.19 1601.09 -0.12 Ho Chi Minh 965.34 958.54 0.71 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3223.71 3068.76 5.05 Bangkok 1633.84 1563.88 4.47 Manila 7646.66 7,466.02 2.42 Jakarta 6071.202 6,194.50 -1.99 Kuala Lumpur 1599.19 1690.58 -5.41 Ho Chi Minh 965.34 892.54 8.16 (Reporting by Nikhil Subba; Editing by Sherry Jacob-Phillips)
