(Sept 6): Philippine shares sank for a second day on Thursday, as concerns about rising inflation lingered and worries about an escalation in a bitter U.S.-China trade dispute hit sentiment.
Indonesian shares recovered after three days of declines, during which other emerging markets stocks and currencies were also pressured and the country's rupiah currency hit a two-decade low.
"The onslaught of strong USD and sell-off in emerging market currencies, led by the Argentine Peso and Turkish Lira have paused, with some signs of buy-back," Mizuho Bank said in a report.
"But this pause should not be mistaken as a turning point, because there is no sight of a panacea for the underlying chills about emerging markets just yet."
The Philippine index slid 2.3% as industrial and consumer discretionary stocks lost ground. Fast-food chain Jollibee led the decline with a 1.9% fall, while SM Investments Corp shed 3%.
Philippine annual inflation reached its highest in nearly a decade in August, data showed on Wednesday, raising the chances of an interest rate hike. The central bank will weigh the need for further monetary policy action, Governor Nestor Espenilla said.
Meanwhile, Indonesian shares rebounded after seeing their worst fall in three years on Wednesday.
The Indonesian central bank stepped in after the rupiah hit a 20-year low, while foreign investors trimmed positions in the country's assets, with outflows reaching US$58.8 million on Wednesday, Thomson Reuters Eikon data showed.
Indonesia will raise import taxes on more than 1,000 goods ranging from cosmetics to cars, as part of measures aimed at cutting imports and supporting the rupiah, the finance minister said on Wednesday.
Consumer staples and telecom stocks lent support to the benchmark with Telekomunikasi Indonesia rising 2.1%. Unilever Indonesia rose 1.4%.
An index of the country's 45 most liquid stocks was up 0.4%.
Malaysian shares edged higher, helped by financial and telecom stocks. CIMB Group and Axiata Group rose 0.7% and 1.6% respectively.
Singapore and Thai shares were largely unchanged.
SOUTHEAST ASIAN STOCK MARKETS: AS AT 0345GMT
Change on the day
|Market||Current||Previous Close||Pct Move|
|Ho Chi Minh||965.52||968.44||-0.30|
Change on year
|Market||Current||End 2017||Pct Move|
|Ho Chi Minh||965.52||984.24||-1.90|