Mostly lower after euro zone growth cut, tepid US trade data

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JAKARTA (Nov 5): Southeast Asian stock markets were mostly trading down on Wednesday after an economic growth downgrade in the euro zone and an unexpected widening of the U.S. trade deficit.

    
The Philippines stock index led the decline in the region with a 0.5 percent fall, extending its 1.2 percent fall in the previous session. Malaysian stocks fell 0.3
percent.
    
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 gained 0.1 percent, rebounding after two days of decline despite disappointing economic data. The country's GDP grew 5.01 percent in the third quarter, its slowest since 2009.
    
"Some investors may be doing bargain hunting following the two-day decline, but I think there will be a correction once they have digested the GDP data," Priyambada said.
    
Indonesia's biggest taxi operator PT Blue Bird Tbk rose as much as 26 percent on its trading debut on Wednesday.

SOUTHEAST ASIAN STOCK MARKETS
 Change on 0511 GMT
 Market             Current     Prev Close    Pct Move
 Singapore          3285.18       3281.57       +0.11
 Kuala Lumpur       1841.16       1847.36       -0.34
 Bangkok            1580.79       1585.15       -0.28
 Jakarta            5075.80       5070.94       +0.10
 Manila             7186.33       7222.01       -0.49
 Ho Chi Minh         596.49        598.39       -0.32