SE Asian stocks muted; Thailand, Indonesia extend slide

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BENGALURU (Aug 15): Most Southeast Asian stock markets traded in tight ranges on Wednesday as the fallout from Turkey's currency crisis kept risk appetite sour, with Thai and Indonesian shares extending their deep losses from previous sessions.

Southeast Asian stocks and currencies had been hit by heavy selling over as the collapse of the Turkish lira stoked fears that other emerging markets could be vulnerable to shocks from foreign capital outflows. Asian shares showed no signs of recovery, with MSCI's broadest index of Asia-Pacific shares outside Japan slipping about 0.7% on Wednesday.

The lira's plunge sent the Indonesian rupiah to a near three-year low, with investors treading cautiously as Bank Indonesia is set to reach a decision on its key interest rate later in the day.

Indonesian shares slipped, set to extend a 5% plunge over the last two sessions.

The central bank is expected to keep its benchmark interest rate unchanged despite a plunge in the rupiah, a Reuters poll showed.

"Consensus does not expect a Bank Indonesia hike today but we suspect that the decision will be a close call," DBS said in a note.

"Spillover from Turkey's crisis and a large second-quarter current account deficit print have seen rupiah assets come under pressure. However, in the short term, emerging market sentiment is key."

Thai shares fell about 0.7%, dragged primarily by energy stocks as oil prices fell. Oil and gas companies PTT PCL and PTT Exploration and Production PCL lost about 1.4% each.

Change on the day

Market             Current   Previous close  % move
Singapore          3237.17   3242.87         -0.18
Bangkok            1683.62   1695.35         -0.69
Manila             7542.4    7527.78         0.19
Jakarta            5757.075  5769.873        -0.22
Kuala Lumpur       1785.44   1783.78         0.09
Ho Chi Minh        978.03    978.27          -0.02

Change on year

Market             Current   End 2017        % move
Singapore          3237.17   3402.92         -4.87
Bangkok            1683.62   1753.71         -4.00
Manila             7542.4    8558.42         -11.87
Jakarta            5757.075  6355.654        -9.42
Kuala Lumpur       1785.44   1796.81         -0.63
Ho Chi Minh        978.03    984.24          -0.63