South East Asian markets: Japanese radiation fears trigger selling

Southeast Asian stock markets dropped on Tuesday as Japan's growing nuclear problems caused widespread selling, with Singapore falling more than 3 percent at one stage to its lowest level since last August. The potential economic impact on the region of the Japanese disaster prompted risk-averse investors to sell heavily and turnover in most markets, including Singapore, was well above the 30-day average.
Singapore falls to 7-month low at one stage
Most other markets drop in brisk volume
Singapore finished off 2.8 percent at 2,946.08, erasing a little of its early loss. However, Najeeb Jarhom, head of research at AmFraser Securities, said Singapore could soon offer trading chances for blue chips. Indonesia fell 1.3 percent, gaining a small $4.7 million in inflows, and Philippine shares eased 0.6 percent, with inflows of $14.2 million, Thomson Reuters data showed. Investors across Asia are fleeing risky assets such as equities and commodities because of uncertainty about world growth after damage caused in Japan by an earthquake on Friday and resulting radiation leaks from nuclear power plants.
Japanese shares plunged 10.6 percent on Tuesday. Asian stocks outside Japan had dropped 5.3 percent by 1011 GMT and emerging market stocks 2.2 percent. Among losers in Southeast Asia, PTT, Thailand's biggest listed firm, dropped 3.2 percent as it went ex-dividend, Singapore Telecommunications fell 1.7 percent and Malaysian palm oil stock IOI Corp lost 1.9 percent.
Airline companies fell again because of worries about tourism and travel around the region, with some considering whether they should halt flights to and from Japan. Thai Airways International fell 4.4 percent, Singapore Airlines lost nearly 4 percent and Malaysia's AirAsia, Asia's largest budget carrier by fleet size, dropped 2.8 percent.
Suchart Techaposai, Head of Thailand Country Research at broker Citi Investment Research and Analysis, expects Thailand's tourist sector to suffer but petrochemicals and energy stocks should gain. Thai industrial estate developer Amata Corp, whose major clients are Japanese investors, fell 3.5 percent and auto parts maker Somboon Advance Technology lost nearly 5 percent.