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4 months ago
CORRECTED-SE Asia Stocks-Fall as Fed minutes spur capital outflow fears
April 6, 2017 / 5:34 AM / 4 months ago

CORRECTED-SE Asia Stocks-Fall as Fed minutes spur capital outflow fears

4 Min Read

 (Corrects Reuters instrument code for Thai index in last
paragraph)
    By Ambar Warrick
    April 6 (Reuters) - Southeast Asian shares fell on Thursday
on worries of capital outflows from the region after minutes of
the U.S. Fed meeting showed that most policymakers were of the
view that the central bank should start trimming its massive
stimulus.
    The U.S central bank's stimulus since the global financial
crisis has driven huge amounts of investment inflows into
emerging markets in Asia and any reduction in that could trigger
capital outflows from the region.
    Most Federal Reserve policymakers think the central bank
should take steps to begin trimming its $4.5 trillion balance
sheet later this year as long as the economic data holds up,
minutes from their last meeting showed.
    "Southeast Asian markets are basically following the
performance of U.S. stocks last night after the minutes of the
FOMC meeting," said Lexter Azurin, equity analyst at 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". 
    The market is keeping a close watch on a potentially tense
meeting between U.S. 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 0.9 percent at 0409 GMT. 
    Philippines snapped a three-day gaining streak and
fell as much as 0.7 percent with financials and real estate
sectors declining. 
    "I think the Philippines market is just taking a breather.
There has been a renewed interest in the market over the past
few days which pushed it up," added Azurin.
    Business process outsourcing services provider Ayala Corp
 clocked its biggest intraday percentage drop since
December 2016, while property developer Ayala Land fell
as much as 2.8 percent. 
    Singapore shed as much as 0.6 percent dragged down by
financial stocks. DBS Group fell about 1 percent,
while Oversea-Chinese Banking Corp fell as much as 0.9
percent.
    Indonesia fell after notching record highs for three
consecutive days as energy stocks dropped.
    The index of the region's 45 most liquid stocks
fell as much as 0.6 percent.
    Energi Mega Persada fell to a record low while
Bukit Asam (Persero) posted its biggest intraday loss
in nearly five months.
    Vietnam and Thailand were closed for Hung
King's Day and Chakri Day, respectively.
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS: Change at 0436 GMT
    
  Market           Current       previous     Pct Move
                                 close        
  Singapore        3163.94       3176.55      -0.40
  Manila           7543.09       7584.21      -0.54
  Jakarta          5653.653      5676.98      -0.41
  Kuala Lumpur     1739.93       1744.67      -0.27
                                              
  Change so far                               
 this year                                    
  Market           Current       End 2016     Pct Move
  Singapore        3163.94       2880.76      9.83
  Bangkok          1582.12       1542.94      2.54
  Manila           7543.09       6840.64      10.27
  Jakarta          5653.653      5296.711     6.74
  Kuala Lumpur     1739.93       1641.73      5.98
 Ho Chi Minh       723.22        664.87       8.78
 


 (Reporting by Ambar Warrick in Bengaluru; Editing by Vyas
Mohan)
  

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