Most markets fall, Vietnam plunges over 4%

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(July 3): Most Southeast Asian stock markets fell on Tuesday, with Vietnam declining over 4% to a seven-month closing low, while Thailand rose more than 1%.

Broader Asian markets also fell amid escalating worries a bitter trade dispute between the United States and major economies could derail global growth.

Investors have been jittery ahead of a July 6 deadline, when the United States is set to slap tariffs on US$34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on U.S. products.

In Southeast Asia, Vietnam shares slumped 4.3% in moderately heavy trading and posted their lowest close in more than seven months.

"Investors are concerned about the possible return of high inflation and possible capital outflows triggered by higher interest rates in the U.S. Today's strong selloff was also triggered by margin calls," said Tran Anh Tuan, chief analyst at Vietcombank Securities.

Real estate and financial stocks were among the top losers with Vinhomes JSC and Vingroup JSC shedding 7% each.

Vietnam shares have declined more than 25% from a record high hit on April 10.

Indonesian shares plunged 2% to their lowest close since mid-May 2017 in broad-based losses.

Lender Bank Central Asia and personal care products maker Unilever Indonesia fell over 2% each.

An index of the country's 45 most liquid stocks declined more than 2%.

Thai shares erased early losses and closed 1.2% higher, helped by industrial, health care and real estate stocks.

Airports of Thailand rose 2.3%, while Bangkok Dusit Medical Services added over 5%.

Philippine shares extended gains into a third session and posted a two-week closing high, led by a rally in industrials.

Index heavyweight SM Investments Corp rose 1.7%, while Aboitiz Equity Ventures gained 2.7%.

Philippine annual inflation likely quickened for a sixth straight month in June, a Reuters poll showed, leaving the door open for a third interest rate hike this year. The data is due this week.

The peso has declined 6.6% against the dollar so far this year, making it the second worst performing currency in the region, after the Indian rupee.

SOUTHEAST ASIAN STOCK MARKETS

Change on the day

Current Previous Close Pct Move
Singapore 3235.9 3238.94 -0.09
Bangkok 1626.62 1607.27 1.20
Manila 7267.34 7227.96 0.54
Jakarta 5633.937 5746.77 -1.96
Kuala Lumpur 1680.37 1685.05 -0.28
Ho Chi Minh 906.01 947.15 -4.34

Change on year

Market Current End 2017 Pct Move
Singapore 3235.9 3402.92 -4.91
Bangkok 1626.62 1753.71 -7.25
Manila 7267.34 8558.42 -15.09
Jakarta 5633.937 6355.654 -11.36
Kuala Lumpur 1680.37 1796.81 -6.48
Ho Chi Minh 906.01 984.24 -7.95