Most fall as China-U.S. trade spat ramps up

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(July 11): Southeast Asian stock markets fell on Wednesday, with Singapore erasing some of the last two sessions' gains and Vietnam extending losses to a third session, as Washington warned of tariffs on an additional US$200 billion worth of Chinese imports, escalating the trade dispute.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.5% as the new tariff plan rekindled risk-aversion, after a strong start to the week for global equities.

"Expect a risk-off tone to prevail over Asian markets today, as investors prepare for the next escalation of U.S.-Sino trade tensions and China's response", OCBC said on a note.

Singapore shares shed as much as 1.7%, giving up some of their 2.6% gain over the last two sessions.

Oversea-Chinese Banking Corp Ltd and DBS Group Holdings fell over 2.6% each.

Indonesian stocks slid 1%, with Bank Negara Indonesia down as much as 3.4% and Unilever Indonesia dropping over 1%.

The index of the country's 45 most liquid stocks declined 1.6% in early trade.

Malaysian shares were down as much as 0.5%.

Telecommunications service provider Axiata Group Bhd fell 3.8%.

The Malaysian central bank is expected to leave its benchmark interest rate unchanged at its first policy meeting under the newly-appointed central bank governor.

Thai shares fell nearly 1%, with energy stocks taking a beating from falling oil prices.

PTT Public Co fell more than 2%, while Airports of Thailand were set to extend losses to a second session.

Vietnam's main index dropped 2.2%, with real estate company Vingroup Joint Stock Co down nearly 3%.

Meanwhile, Philippine stocks climbed 0.6%, boosted by gains in industrials.

"Investors think that despite the risks and headwinds, some of their risks may have burst in already which resulted in some bargain-hunting on some heavily discounted levels", said Fio Dejesus, an analyst at Manila-based RCBC Securities.

Index heavyweights SM Investments Corp was up as much as 2.6% and Bank of the Philippine Islands gained over 2.4%.
    
SOUTHEAST ASIAN STOCK MARKETS AS AT 0418 GMT

Market Current Previous close Pct Move
Singapore 3247.34 3274.83 -0.84
Bangkok 1639.44 1643.6 -0.25
Manila 7278.92 7233.29 0.63
Jakarta 5870.734 5881.76 -0.19
Kuala Lumpur 1684.69 1687.13 -0.14
Ho Chi Minh 896.14 911.12 -1.64

Change on year

Market Current End 2017 Pct Move
Singapore 3247.34 3402.92 -4.57
Bangkok 1639.44 1753.71 -6.52
Manila 7278.92 8558.42 -14.95
Jakarta 5870.734 6355.654 -7.63
Kuala Lumpur 1684.69 1796.81 -6.24
Ho Chi Minh 896.14 984.24 -8.95