Friday 29 Mar 2024
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(April 6): Most Southeast Asian stock markets closed lower on Thursday on fears of capital outflows from the region after minutes of the US Federal Reserve's last meeting showed that most policymakers think it should start trimming its massive stimulus.

The US central bank's stimulus since the global financial crisis has driven capital inflows into Asia's emerging markets, and a reduction in it could prompt outflows from the region.

The minutes released on Wednesday of the March 14-15 policy discussion showed that most Federal Reserve policymakers think the central bank should take steps to begin trimming its US$4.5 trillion balance sheet later this year as long as the economic data holds up.

"Southeast Asian markets are basically following the performance of US stocks last night after the minutes of the FOMC (Federal Open Market Committee) meeting," said Lexter Azurin, an equity analyst with AB Capital Securities.

Wall Street ended lower on Wednesday after a late-afternoon reversal following signals from the Fed.

"Investors are taking a cautious stance as there is a bit of uncertainty over the next rate hike."

Investors were also wary ahead of the much anticipated meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, the first between the world's two most powerful leaders.

MSCI's broadest index of Asia-Pacific shares outside Japan was down about 0.6% at 0833 GMT.

Indonesian shares recovered from early falls to close at a record high, rising for a fourth straight session.

The index of the region's 45 most liquid stocks was up about 0.1%.

Financials were the main gainers with Bank Mandiri (Persero) posting a two-year closing high while Bank Central Asia ended at an all-time high.

Philippine shares closed 0.3% lower after touching a five-month high earlier, with financial and real estate stocks leading the decline.

"I think the Philippine market is just taking a breather. There has been a renewed interest in the market over the past few days which pushed it up," said Azurin.

Business process outsourcing services provider Ayala Corp closed 2.8% lower, while property developer Ayala Land ended down 2.6%.

Vietnam and Thailand were closed for Hung King's Day and Chakri Day, respectively.

SOUTHEAST ASIAN STOCK MARKETS
Change on day

Market           Current       Previous close     % move
Singapore        3175.59       3176.55      -0.03
Manila           7565.32       7584.21      -0.25
Jakarta          5680.239      5676.98      0.06
Kuala Lumpur     1739.56       1744.67      -0.29

Change so far this year

Market           Current       End 2016     % move
Singapore        3175.59       2880.76      10.23
Bangkok          1582.12       1542.94      2.54
Manila           7565.32       6840.64      10.59
Jakarta          5680.239      5296.711     7.24
Kuala Lumpur     1739.56       1641.73      5.96
Ho Chi Minh       723.22        664.87       8.78

 

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