Most Southeast Asian stock markets eased on Tuesday as falling oil prices hit energy stocks, with Thailand's stock index posting its biggest single-day drop since August. Thailand's SET index posted the steepest fall in the region with a 2 percent drop, led by oil firm PTT Pcl, which fell 4.4 percent to its lowest close since October 1. Thailand's overall energy sector fell 3.3 percent.
Global benchmark Brent crude futures dropped 5.4 percent to $40.66 per barrel on Monday, after the Organisation of the Petroleum Exporting Countries' (Opec) policy meeting on Friday ended without an agreement to lower production. "This will put negative pressure on oil-linked stocks, with short-term pain for downstream operators ...and long-term pain for upstream operators with respect to the bearish oil price trend," Patcharin Karsemarnuntana, an analyst with KT ZMICO Securities, said in a note on Tuesday.
Lower oil prices also hit energy stocks in Indonesia, leading to a 1.3 percent decline in the benchmark index. Oil and gas firm PT Medco Energi Internasional Tbk plunged 9.6 percent, while coal miner PT Bukit Asam dropped 5.8 percent. The Indonesian market will be closed on Wednesday for a public holiday. Bucking the regional trend, the Vietnam index gained 1.9 percent.
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