Lower after euro zone growth downgrade, US trade deficit

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Lower after euro zone growth downgrade, US trade deficit

JAKARTA (Nov 5): Southeast Asian stock markets mostly ended lower Wednesday, taking their cue from an economic growth downgrade for the euro zone, unexpected widening of the U.S. trade deficit and tepid domestic economic data.
    
The European Commission said the euro zone economy would expand by 0.8 percent this year, 1.1 percent next year and by 1.7 percent in 2016 - a level the Commission said six months ago would be achieved next year.    
    
"The growth cut in the euro zone confirms that the European economy is not improving and the widening trade deficit in the U.S. added to the negative sentiment," said Reza Priyambada, head of research at Woori Korindo Securities in Jakarta.
    
The U.S. trade deficit in September unexpectedly widened after exports hit a five-month low.
    
Indonesian stocks erased gains earlier in the seesion to close 0.1 percent lower following worse-than-expected GDP data. The country's GDP grew 5.01 percent in the third quarter, its slowest since 2009, highlighting the challenges the new president faces.
    
Thailand's stock index led the decline in the region with a 0.5 percent fall. The baht fell to its weakest
since June 2 after Thailand's central bank left interest rates unchanged on Wednesday, but said there was room for further reduction if needed.       
    
Siam Cement PCL fell 1.3 percent, while telecommunication company True Corporation PCL declined 1.7 percent.
    
Bucking the trend, Singapore's stock index rose 0.2 percent.        

 

SOUTHEAST ASIAN STOCK MARKETS
 Change on day
 Market             Current     Prev Close    Pct Move
 Singapore          3287.54       3281.57       +0.18
 Kuala Lumpur       1839.29       1847.36       -0.44
 Bangkok            1577.40       1585.15       -0.49
 Jakarta            5066.83       5070.94       -0.08
 Manila             7208.81       7222.01       -0.18
 Ho Chi Minh         597.01        598.39       -0.23
 
 Change on year
 Market             Current       End 2013    Pct Move
 Singapore          3287.54       3167.43       +3.79
 Kuala Lumpur       1839.29       1866.96       -1.48
 Bangkok            1577.40       1298.71       +21.5
 Jakarta            5066.83       4274.18       +18.5
 Manila             7208.81       5889.83       +22.4
 Ho Chi Minh         597.01        504.63       +18.3