(June 26): Southeast Asian stock markets fell on Tuesday, as escalating trade tensions between the United States and other major economies prompted investors to reduce exposure to riskier assets, causing a global equity rout.
Broader Asian shares fell as Wall Street retreated overnight, with technology stocks posting steep losses, after reports the U.S. Treasury Department was drafting curbs to block Chinese investment in U.S. tech firms, although Treasury Secretary Steven Mnuchin later clarified restrictions would not specifically apply to China.
Safe havens such as the Japanese yen and gold saw increased buying, while U.S. long-dated treasuries also rose overnight.
"Reports that Treasury is preparing rules to curb Chinese investment in U.S. technology companies were not off the mark.
Mnuchin affirmed investment restrictions will apply to all countries trying to steal U.S. technology, with China an obvious target," Mizuho said in a research note.
"This could reduce scope for corporate synergies, and potentially incite new Chinese retaliation, thus negatively affecting growth."
Singapore stocks dropped 0.7% to their lowest since October, with Oversea-Chinese Banking Corp among the top declining stocks.
Vietnam shares slumped as much as 2%, led by losses in financials and real estate stocks.
Joint Stock Commercial Bank for Foreign Trade of Viet Nam lost about 1.4%, while property developer Vingroup JSC lost more than 2%.
Philippine shares were set to extend losses into a ninth straight session, as industrials and financials such as SM Investments Corp and Metropolitan Bank and Trust Co declined.
SOUTHEAST ASIAN STOCK MARKETS:
CHANGE AS AT 0332 GMT
|Market||Current||Previous close||Pct Move|
|Ho Chi Minh||977.18||990.52||-1.35|
Change on year
|Market||Current||End 2017||Pct Move|
|Ho Chi Minh||977.18||984.24||-0.72|