(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|
|Ho Chi Minh||896.14||911.12||-1.64|
Change on year
|Market||Current||End 2017||Pct Move|
|Ho Chi Minh||896.14||984.24||-8.95|