Most SE Asian stocks fall as investors flee emerging markets; Indonesia slumps

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BENGALURU (Aug 13): Most Southeast Asian stock markets fell on Monday as they bore the fallout from an emerging-market selloff that originated in Turkey.

The Turkish lira and the Indian rupee hit all-time lows against the US dollar, while a slide in the Indonesian rupiah to a near three-year low prompted intervention by the central bank.

"Emerging markets have very weak current account balances which would have a very negative impact," said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.

"That is prompting investors to reassess their investment thesis on emerging markets as we really don't know how it is going to play out."

The lira has declined more than 40% against the dollar this year amid concerns about President Tayyip Erdogan's influence over the economy, his repeated calls for lower interest rates, and worsening ties with the United States.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped as much as 1.9% on Monday.

In Southeast Asia, Indonesian shares slumped 3.6%, their biggest single-day drop since Nov 11, 2016, with financials leading the decline.

Bank Central Asia fell 2.3%, while PT Telekomunikasi Indonesia Tbk, the country's largest telecom firm, lost 3.7%.

An index of the country's 45 most liquid stocks dropped 4.1%.

The rupiah plunged 1.07% to its weakest since October 2015 in intraday trade after data showed on Friday the country's current account deficit in the second quarter swelled to the largest in nearly four years.

In neighbouring Malaysia, the key stock index fell 1.2% with all sectors in negative territory. Telecom services and utility stocks led the decline, with electricity utility Tenaga Nasional Bhd ending 1.4% lower.

Philippine stocks fell 2.2% to their lowest close since July 25 with all but three stocks in the red.

Food-to-petrochemicals holding firm JG Summit Holdings Inc slumped 6.8%, making it the top loser on the benchmark stock index.

Singapore shares dropped 1.2% to their lowest close in nearly four weeks in broad-based losses.

Oversea-Chinese Banking Corp and fellow lender DBS Group Holdings were the biggest drags on the city-state's benchmark stock index. OCBC shed 2%, while DBS lost 1.5%.

Revised data showed Singapore's economy grew slower than initial estimates in April-June on a quarter-on-quarter basis, as the government flagged a likely moderation in growth in the second half.

Thailand was closed for a holiday.

SOUTHEAST ASIAN STOCK MARKETS: Change on the day

Market           Current     Previous close    % move
Singapore        3245.34     3284.78           -1.20
Manila           7635.27     7804.98           -2.17
Jakarta          5861.246    6077.173          -3.55
Kuala Lumpur     1783.34     1805.75           -1.24
Ho Chi Minh       978.04      968.47            0.99

Change on year

Market           Current     End 2017          % move
Singapore        3245.34     3402.92           -4.63
Manila           7635.27     8,558.42          -10.79
Jakarta          5861.246    6355.654          -7.78
Kuala Lumpur     1783.34     1796.81           -0.75
Ho Chi Minh      978.04      984.24            -0.63