SE Asia Stocks-Rate cut boosts Indonesia, but others fall
* Weak U.S. job data prompts selling in major markets
* Indonesia bucks the trend, helped by rate cut
* Singapore, Thailand, Malaysia drop to one-week low
By Arada Therdthammakun
BANGKOK, July 3 (Reuters) - Major Southeast Asian stock markets fell to their lowest level in a week on Friday after losses on Wall Street following grim U.S. unemployment data, but Indonesia managed to end higher after an interest rate cut.
Stock markets declined across Asia following a 2.63 percent slump on Wall Street as a steeper-than-expected slide in U.S. June non-farm payrolls revived caution about the prospect for economic recovery. [nN02297873]
"Sentiment is quite bleak as the weakness in U.S. data raises doubt about the speed of the global economic recovery. The slow pace of the recovery also hits commodity prices, so oil-related shares have largely gone down," said Pichai Lertsupongkij, head of sales at Thanachart Securities.
U.S. crude for August delivery CLc1 slipped 30 cents to $66.43 a barrel by 0902 GMT. It had fallen nearly 4 percent the previous session, under pressure from a stronger dollar as well as concern about the outlook for the economy and energy demand. [nSYD475678]
The MSCI index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.06 percent at 0906 GMT.
Singapore's Straits Times Index .FTSTI dropped 0.91 percent to its lowest in more than a week, Thai shares .SETI closed down 0.5 percent at a one-week low and Malaysia's index fell 0.56 percent. The Philippine index .PSI slipped 0.27 percent.
But Indonesian stocks .JKSE recovered from a 1.3 percent fall to end up 0.46 percent after the central bank cut its key rate by 25 basis points to a record low of 6.75 percent and said it expected economic growth to reach the upper end of its 3-4 percent forecast range this year. [nJAK517390]
Vietnam .VNI also gained, ending 0.38 percent higher.
Blue chips in Singapore led the decline, with Capitaland (CATL.SI: Quote, Profile, Research), Southeast Asia's largest property developer, falling 0.55 percent, DBS Group Holding (DBSM.SI: Quote, Profile, Research) down 0.52 percent, and United Overseas Bank (UOBH.SI: Quote, Profile, Research) 1.66 percent lower.
Losses in Bangkok were led by oil stocks and petrochemical firms, with PTT Exploration and Production PCL PTTE.BK falling 1.55 percent and PTT Chemical PTTC.BK down 2.02 percent.
But Banpu BANP.BK, Thailand's top coal miner, bucked the trend, rising 0.31 percent after the company told Reuters it was on track to meet its full-year sales target since demand was expected to pick up in the second half. [nBKK462987]
In Jakarta, the rally was led by gains in big-cap telecom stocks. Telkom Indonesia (TLKM.JK: Quote, Profile, Research) rose 4.88 percent to its highest since May 23, and second-largest PT Indosat Tbk (ISAT.JK: Quote, Profile, Research) edged up 5.77 percent. ($1=34.05) (Editing by Alan Raybould)
© Thomson Reuters 2009 All rights reserved
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