Philippines sheds over 1%; others wary before U.S. tariff deadline

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(July 5): Philippine shares fell more than 1% on Thursday, after the country's June inflation hit an over five-year high, while other markets in the region were subdued on caution ahead of Friday's deadline for further U.S. tariffs on Chinese goods. 

The Philippine consumer price index stood at 5.2% in June, above the 4.8% forecast in a Reuters poll, raising expectations of a third interest rate hike this year.

"Inflation data is negative for equity markets and it could (trigger) more rate hikes, which might result in slower growth going forward," said Charles William Ang, associate analyst at COL Financial Group.

Financial and industrial stocks weighed on the benchmark with blue-chip SM Investments Corp and Ayala Corp slipping 2.8% and 2.1% respectively.

"Base case of at least (the) central bank and analysts is that inflation would remain high this year and may normalize next year," Ang added.

Meanwhile, other markets in the region were subdued on worries further U.S. tariffs on China would be met with a tit-for-tat response from the world's second-largest economy.

Indonesian shares fell 0.4%, weighed down by financial and consumer stocks. Unilever Indonesia and Bank Central Asia, fell 0.5% and 1% respectively on profit-booking. 

An index of the country's 45 most liquid stocks fell 0.8%. 

Singapore stocks rose for a second straight day, led by real estate and telecom shares. Market heavyweight Singapore Telecommunications rose 1.3%, while property investor UOL Group gained more than 4.4%. 

Malaysian shares were trading marginally higher, amid thin volumes ahead of the country's trade data for May due later in the day.

Malaysia's exports are expected to have grown 6.4% in May from a year earlier, slowing sharply from the previous month, a Reuters poll showed.
 
Vietnam's Ho-Chi-Minh index was trading 0.3% higher. 

SOUTHEAST ASIAN STOCK MARKETS: CHANGE AS AT 0359 GMT

Change on the day

Market Current Previous close Pct Move
Singapore 3247.69 3244.89 0.09
Bangkok 1612.94 1629.2 -1.00
Manila 7243.95 7348.42 -1.42
Jakarta 5711.318 5733.639 -0.39
Kuala Lumpur 1688.43 1688.45 0.00
Ho Chi Minh 917.5 914.99 0.27

Change on year

Market Current End 2017 Pct Move
Singapore 3247.69 3402.92 -4.56
Bangkok 1612.94 1753.71 -8.03
Manila 7243.95 8558.42 -15.36
Jakarta 5711.318 6355.654 -10.14
Kuala Lumpur 1688.43 1796.81 -6.03
Ho Chi Minh 917.5 984.24 -6.78