Start data-heavy week on back foot; trade war fears linger
(July 2): Most Southeast Asian stock markets fell on Monday on caution ahead of a raft of economic data this week, while sentiment remained weak as the July 6 deadline when the U.S. is due to impose US$34 billion of tariffs on Chinese exports is fast approaching.
Asian shares excluding Japan were about 0.4% lower, after losing 2% last week, as trade concerns clouded the outlook for Chinese growth.
In regional markets, Vietnam’s Ho-Chi-Minh index declined as much as 2.4%, despite strong June manufacturing figures, as financials and real estate stocks weighed on the benchmark.
Vietcombank and Vinhomes JSC’s down 3.3% and 1.3% respectively, were the biggest drag on the index.
Indonesia’s benchmark index rose as gains in energy and financial stocks outweighed losses in materials and consumer staples.
Financials got a fillip after the country’s central bank on Friday raised its benchmark rate by twice as much as the market expected on Friday in a bid to defend the rupiah.
“Last Friday’s move was unexpected and is a very strong message that the central bank is unwilling to tolerate further weakness of the rupiah,” said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.
However, investors will keep a close eye on inflation data due later in the day, he added.
According to a Reuters poll, Indonesia’s annual inflation rate in June is seen slowing at 2.88%, compared with 3.23% a month earlier.
Energy stocks dragged the Thai benchmark index 0.2% lower, after oil prices fell by more than one percent on Monday on rising supplies in Saudi Arabia.
Oil and Gas explorer PTT Pcl was 0.5% lower, while its unit PTT Exploration and Production Pcl fell 4.6%.
Data from the country’s commerce ministry showed headline inflation rose 1.38% in June, albeit at a slower pace.
Philippine shares rose, led by industrials and telecom stocks. Ayala Land rose 1.5% and SM Investments Corp added 2.2%.
The archipelago is due to release its core inflation data on Thursday.
SOUTHEAST ASIAN STOCK MARKETS:
CHANGE AS AT 0430 GMT
Change on the day
|Market||Current||Previous close||Pct Move|
|Ho Chi Minh||939.91||960.78||-2.17|
Change on year
|Market||Current||End 2017||Pct Move|
|Ho Chi Minh||939.91||984.24||-4.50|
Source: The Edge