Singapore snaps 2 days of gains, Vietnam slumps

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(July 11): Singapore shares snapped two straight sessions of gains on Wednesday with financials leading the decline, while Vietnam stocks slumped 2% to an eight-month closing trough.

Broader investor sentiment was low as US threats of tariffs on an additional US$200 billion worth of Chinese goods pushed the world's two biggest economies ever closer to a full-scale trade war.

Singapore's FTSE Straits Times Index closed 0.8% lower, with Oversea-Chinese Banking Corp and DBS Group Holdings shedding 2% and 1.1%, respectively.

"If overall regional and China-centric trade flows decline, the Singapore economy will likely take a hit due to its dependence on trade and manufacturing activities," OCBC Bank said in a note.

Vietnam shares extended losses into a third session with financial services provider Vietcombank closing 3.6% lower.    

Thai shares snapped three consecutive sessions of gains and closed 0.4% lower. PTT Public Co fell 0.5% and Airports of Thailand dropped 1.2%.

Philippine shares rose 1.4% to a one-week closing high with industrials at the helm.

"Despite Philippine's trade exposure to China and US being relatively high, given that a majority of the country's growth is fuelled by domestic consumption, it is less susceptible to trade fluctuations as compared to other ASEAN countries," OCBC Bank added.

SM Investments climbed 4.2%, while Ayala Land gained 2.1%.

Malaysian shares erased early losses to close marginally higher.

Earlier in the day, the central bank kept its key interest rate at 3.25% at its first policy meeting under the newly appointed central bank governor.

Indonesian shares closed 0.2% higher with Astra International being the biggest boost.     

SOUTHEAST ASIAN STOCK MARKETS
Change on the day

Market             Current   Previous close  % move
Singapore          3249.08   3274.83         -0.79
Bangkok            1636.63   1643.6          -0.42
Manila             7333.73   7233.29         1.39
Jakarta            5893.359  5881.76         0.20
Kuala Lumpur       1688.77   1687.13         0.10
Ho Chi Minh        893.16    911.12          -1.97

Change on year

Market             Current   End 2017        % move
Singapore          3249.08   3402.92         -4.52
Bangkok            1636.63   1753.71         -6.68
Manila             7333.73   8558.42         -14.31
Jakarta            5893.359  6355.654        -7.27
Kuala Lumpur       1688.77   1796.81         -6.01
Ho Chi Minh        893.16    984.24          -9.25