Southeast Asian stock markets extend losses on Tuesday after a fall in the Russian rouble triggered a sell-off in emerging markets due to global risk aversion. The slump in the rouble on the back of falling oil prices and Western sanctions has sent emerging market investors into a panic, analysts said, prompting US dollar buying which hurt local currencies and stock prices in Southeast Asia.
Russia's central bank sharply hiked interest rates early on Tuesday to support the currency, but after a brief recovery the rouble fell to a new all-time low against the dollar. Thai stocks fell as much as 3.9 percent led by energy stocks before recovering some losses to close 1.1 percent down for the day, a sixth consecutive day of falls.
Shares of PTT Exploration and Production PCL fell 5.2 percent to their lowest since April 2009, while Bangchak Petroleum PCL lost 4.1 percent to its lowest in more than four months. The Thai central bank said it did not see "unusual capital outflow" from the country despite foreign investors posting about 14 billion baht ($424.89 million) of net sales in the past four sessions to Monday.
Indonesian stocks fell 1.6 percent, extending a 1 percent decline from the previous session, after the rupiah hit a fresh 16-year low early on Tuesday. Later, the currency recovered after Bank Indonesia intervened in the forex and bond markets. Singapore's stock index lost 2.4 percent while the Philippines fell 1.6 percent.
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