July 8, 2019 / 3:58 AM / 2 months ago

SE Asia Stocks-Fall as strong U.S. job data dampens deep rate cut hopes

    * Singapore sees worst trading day in almost two months
    * Markets have priced in chances of 25 bps rate cut - CMC
Markets

    By Soumyajit Saha
    July 8 (Reuters) - Southeast Asian stock markets were down
on Monday as a strong showing in U.S. jobs data dampened
investor hopes of an aggressive Fed rate cut later this month.
    U.S. nonfarm payrolls increased by 224,000 jobs as in June,
much more than the increase of 160,000 forecast by a Reuters
poll of economists.
    "A fabulous jobs report reduces the likelihood of a deep
interest rate cut at the FOMC meeting in end July," said
Margaret Yang Yan, Market Analyst at CMC Markets, a note.
    Markets, however, have not completely ruled out a rate cut
in the face of the unresolved Sino-U.S. tariff war, with the 
U.S. Federal Reserve promising to "act appropriately" to sustain
economic growth. Global equities have rallied of late on hopes
of stronger inflows after a cut from the Fed. 
    "Markets still priced in a 95% likelihood of a 25bps rate
cut and 5% chance of a 50bps cut," said Yan, adding the market
would look for further cues in Fed Chairman Jerome Powell's
testimony to the U.S. Congress on the economy later this week.
    Singapore shares fell the most in the region, losing
more than 1% in their worst day of trading in almost two months.
    Lenders DBS Group Holdings Ltd and United Overseas
Bank Ltd fell as much as 1.1% each. Financials make up
the largest sector on the Singapore index. 
    Indonesian stocks were lower, weighed down by
financial and consumer stocks. Bank Central Asia Tbk PT
 fell as much as 1.5%, while cigarette maker PT Hanjaya
Mandala Sampoerna Tbk fell as much as 2.45%.
    An index of Indonesia's 45 most liquid stocks fell
0.45%.
    Philippine's benchmark index was dragged down by
financials, with lender BDO Unibank Inc  falling as
much as 1.2%.
    Malaysian stocks were down about 0.4% after gaining
about 0.6% over the last week. Telecom services providers Axiata
Group Bhd and Maxis Bhd were down as much as
2.5% and 1.6%, respectively.
    Thai stocks and Vietnam index were also
lower.
  
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0326 GMT
 Change on the day                            
 Market             Current   Previous close  Pct Move
 Singapore          3327.5    3366.81         -1.17
 Bangkok            1725.97   1731.23         -0.30
 Manila             8105.82   8117.94         -0.15
 Jakarta            6353.889  6373.477        -0.31
 Kuala Lumpur       1676.59   1682.53         -0.35
 Ho Chi Minh        971.37    975.34          -0.41
                                              
 Change on year                               
 Market             Current   End 2018        Pct Move
 Singapore          3327.5    3068.76         8.43
 Bangkok            1725.97   1563.88         10.36
 Manila             8105.82   7466.02         8.57
 Jakarta            6353.889  6194.498        2.57
 Kuala Lumpur       1676.59   1690.58         -0.83
 Ho Chi Minh        971.37    892.54          8.83
 
 (Reporting by Soumyajit Saha; editing by Gopakumar Warrier)
  
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