Reuters logo
SE Asia Stocks-Decline as Trump tax plan hits sentiment
September 28, 2017 / 10:02 AM / in 3 months

SE Asia Stocks-Decline as Trump tax plan hits sentiment

    By Aaron Saldanha
    Sept 28 (Reuters) - Southeast Asian stock markets, except
Vietnam, slipped on Thursday, in line with regional currencies
and equities that lost their appeal after U.S. President Donald
Trump's proposal for a tax overhaul lifted the dollar and bond
yields.
    Trump proposed on Wednesday the biggest tax reform in three
decades, a plan that would also lower corporate and
small-business income tax rates, but could add trillions of
dollars to the deficit.
    "Basically, today's story is depreciation in currencies -
the Asian forex, due to a strong rise in the U.S. dollar," said
Rakpong Chaisuparakul, an analyst with Bangkok-based KGI
Thailand. 
    "Equity flow is slowing alongside the currencies, net
foreign buying in most countries in Asia is slowing since
Tuesday."
    The dollar index, which measures the greenback
against a basket of six major currencies, climbed to a one-month
high, while the U.S. 10-year Treasury yield rose to
its highest since July 13. 
    The dollar's strength also helped pull down Asian
shares to one-month lows.
    Asian currencies took a beating after Trump's tax proposal,
with the Thai baht and the Indonesian rupiah
declining about half a percent on Thursday.
    As well, foreign investors have sold shares worth about $700
million in Indonesia this month, and about $1 billion each in
India and South Korea.
    In Southeast Asia, Philippine shares closed 0.8
percent lower on profit-booking, hit by industrials and
financials. The index touched a record high last week.
    JG Summit Holdings, the top loser, shed as much as
3.3 percent.
    "It is still some profit-taking but I think this is a
healthy correction and looking forward, a further advance in the
 index could still be justified, particularly with our
forecasted earnings growth for the year," said Jeffrey Lucero,
an equity research analyst with Manila-based RCBC Securities. 
    Singapore dropped 0.3 percent, dragged down by
financials and telecom stocks.
    Oversea-Chinese Banking Corp snapped six straight
sessions of gains to close 0.5 percent lower. 
    The Thai index fell 0.2 percent, reversing early
gains, as energy stocks and financials dropped. 
    Oil and gas company PTT Pcl fell about 1 percent. 
    Malaysia and Indonesia lost 0.4 percent
each, while Vietnam rose slightly as consumer staples
gained, with beer maker Sabeco up 4.4 percent.

    
For Asian Companies click;  

SOUTHEAST ASIAN STOCK MARKETS: Change on day
  
 Change on day                             
 Market          Current   Previous Close  Pct Move
 Singapore       3227.14   3236.15         -0.28
 Bangkok         1666.36   1670.27         -0.23
 Manila          8156.04   8221.92         -0.80
 Jakarta         5841.047  5863.027        -0.37
 Kuala Lumpur    1758.06   1764.24         -0.35
 Ho Chi Minh     804.82    803.77          0.13
                                           
 Change on year                            
 Market          Current   End 2016        Pct Move
 Singapore       3227.14   2880.76         12.02
 Bangkok         1666.36   1542.94         8.00
 Manila          8156.04   6840.64         19.23
 Jakarta         5841.047  5296.711        10.28
 Kuala Lumpur    1758.06   1641.73         7.09
 Ho Chi Minh     804.82    664.87          21.05
 
 (Reporting by Aaron Saldanha in Bengaluru; Editing by Biju
Dwarakanath)
  

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below