BENGALURU (June 28): Most Southeast Asian stock markets fell on Thursday, in line with broader Asia on worries that mounting Sino-US trade tensions are hurting global economic growth.
Indonesian shares slumped 2.1% to their lowest close since mid-May 2017, extending their decline into a third session and making them the region's top losers.
Losses were broad-based with financial and material stocks leading the decline. Bank Central Asia ended 1.9% lower, while Indah Kiat Pulp & Paper shed 7.5%.
The Chinese yuan's depreciation is a negative sentiment for Indonesian commodity firms, Trimegah Securities said in a note. In the spot market, the yuan opened at 6.6177 per dollar, and ended the onshore trading session at 6.6250 per dollar, the weakest official close in seven months.
Indonesia exports a substantial amount of coal to China.
An index of the country's 45 most liquid stocks ended 2.2% lower.
The rupiah plunged to its lowest since October 2015 against the dollar on extended outflows. A volatile currency has prompted the central bank to take protective measures for the economy.
Sentiment was also hurt as Asian stocks slumped to a nine-month low. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7% as Chinese stocks, coupled with the yuan, took a fresh beating.
Philippine shares dropped 1.5% after adding 2.4% in the previous session. Industrial and real estate stocks were among the biggest drags after Wednesday's gain on selective bargain-buying.
Index heavyweight SM Investments Corp ended 2.7% lower, while property developer SM Prime Holdings Inc fell 3.5%.
Thai shares declined 1.2% to their lowest close since August 2017 after the finance ministry said annual economic growth would slow in the April-June period.
Meanwhile, Singapore shares closed slightly higher, but remained parched near eight-month lows.
Change on the day
|Market||Current||Previous close||% move|
|Ho Chi Minh||957.35||968.91||-1.19|
Change on year
|Market||Current||End 2017||% move|
|Ho Chi Minh||957.35||984.24||-2.73|