Most Southeast Asian stocks extended their losses and fell to multi-month lows on Tuesday but some markets recovered on easing liquidity hopes after comments from US Federal Reserve and Chinese central bank officials. Two of the Fed's top officials downplayed the notion of an imminent end to monetary stimulus and said on Monday the market reaction was not yet cause for concern.
China's central bank said it expected seasonal factors that caused a recent spike in interbank market rates would gradually fade. The rebound is due to the Fed statement on liquidity, said Edwin Sebayang, head of research at MNC Securities in Jakarta. The Philippines' main index extended losses for a fifth straight session, falling 3.1 percent to a more than six-month low. Vietnam's benchmark VN Index extended losses for a fourth straight day, falling 3.4 percent to a two-month low on foreign selling in bluechips.
Malaysian shares fell for a fifth straight session, dropping 0.5 percent to a near two-month low. Indonesia's main stock index extended losses for a fifth session with a 0.2 percent loss, hitting a five-month low. Both Indonesia and Malaysia recovered during the session, but witnessed foreign outflows of $120.63 million and $129.42 million respectively on Tuesday. Bucking the trend, the Thai SET index gained 1.5 percent, recovering from a six month low and snapping a five-session losing streak. Singapore's Straits Times Index also recovered from a more than six-month low with a 0.5 percent gain.
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