Southeast Asian stocks drop

Southeast Asian stock markets, except Thailand, fell on Tuesday with safe-haven assets such as gold and the yen finding favour with investors amid rising tensions on the Korean peninsula. North Korea's foreign minister said a tweet by US President Donald Trump that North Korean leader Kim Jong Un might not be around for too long amounted to a declaration of war. "The tensions will continue to harm regional markets for the time being, and in the absence of any mediation, we will continue to see weakness in regional markets," said Manny Cruz, an analyst with Manila-based Asiasec Equities.
Earlier, Asian shares fell 0.7 percent as US and North Korean relations hit a new low and as investors also kept an eye out for Federal Reserve Chair Janet Yellen's speech later in the day for fresh signals on whether it would stick to plans to raise interest rates in December. Money markets point to a 70 percent chance of a hike in December but only a 20 percent chance of a further hike in March 2018, according to CME's FedWatch tool.
In Southeast Asia, Philippine shares slipped 0.9 percent to hit a one-week closing low, down for a third straight session. Renewable power producer Energy Development Corp plunged 20 percent to its lowest since December 2013, while property developer Ayala Land posted a two-week closing low, in the Philippine stock market's busiest day of trade since June 16.
Indonesia declined 0.5 percent to end at its lowest in nearly two weeks, with Bank Rakyat Indonesia down 0.8 percent and cigarette manufacturer Gudang Garam losing 2.2 percent. An index of the country's 45 most liquid stocks fell 0.5 percent. Singapore shares cut losses to end marginally lower, shrugging off better-than-expected factory output data, while Malaysia fell 0.2 percent to its lowest close in four weeks.
Thai shares rose 0.1 percent, lifted by energy stocks. PTT Pcl climbed 1.5 percent, while PTT Exploration and Production PCL rose 1.1 percent. Brent oil prices hovered near 26-month highs, supported by Turkey's threat to cut crude exports from Iraq's Kurdistan region as well as signs that market rebalancing is accelerating.
The yen, which traditionally performs strongly in jittery markets, slipped slightly after hitting a high of 111.550 versus the dollar in early trade, while gold was trading steady after touching a one-week top earlier.