Southeast Asian stock markets fell on Friday as growing concern about debt problems in Europe and US job data triggered broad selling in regional heavyweights, pulling indexes in Singapore and Malaysia to three-month lows. Singapore's stock index dropped 2.2 percent to its lowest since November 9, with the biggest firm, Singapore Telecoms, off 2.7 percent, while Malaysia's index lost 1.4 percent as Malayan Banking fell 1.2 percent.
"We are getting into a panic phase at the moment. People have a lot of fear," said one Singapore-based analyst. "They worry about how much stimulus is going to be withdrawn and the earliest rate hikes could be coming about. I think the stock market is adjusting to these concerns right now." Equities in Singapore are set for further falls next week. "The worst is yet to come. I feel the US should test major support and the STI index closing below 2,700 should be the cue for further selling," said a stock dealer in Singapore. The index closed at 2,683.56.
The MSCI index of Asia Pacific stocks traded outside Japan was down 3.5 percent at 0944 GMT while stock index futures pointed to a lower opening in the United States ahead of Friday's crucial payrolls report. The Thai stock index lost 1.6 percent, its largest one-day percentage fall in a week. Indonesia dropped 2.9 percent to its lowest since December 29.
In Bangkok, the market's biggest firm, PTT, fell 1.8 percent and PTT Exploration and Production dropped 2.5 percent in foreign-led selling. In Jakarta, Telkom Indonesia was down 3.2 percent and Astra International was 2.8 percent lower. The Philippines ended 2 percent lower.
The country's biggest firm, Philippine Long Distance Telephone Co, fell 1.7 percent and Metropolitan Bank 5.1 percent. "We really aren't expecting anything new until Chinese New Year is over. It's going to be sideways and down until then," said Jeng Calma, an analyst at A & A Securities in Manila. Vietnam ended 2.1 percent lower.
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