The Philippine index ended lower on Friday as concerns about the Duterte government's foreign alliances spooked sentiment while shares in Singapore fell for a second session. The index extended declines from Thursday to end 0.8 percent lower as President Duterte's increasing alignment with China while "separating" from the United States was not well received by investors.
However, the index was up 3.53 percent for the week. Trade Minister Ramon Lopez's clarification on Friday that the archipelago nation will maintain its trade and economic ties with the US also failed to lift the market. "Sector-wise, among the weakest would be the property sector, so there are some concerns about the statement from the President (Duterte) because there might be some possible weakness in demand for office properties because it is currently BPO-sector driven," said April Lee-Tan, Vice President at COL Financial Group.
Property developer SM Prime Holdings and real estate conglomerate Ayala Land shed nearly 2 percent and 1 percent respectively. Sentiment in the region was also hurt by US stocks ending down after a choppy session on Thursday as investors digested the latest round of corporate results. Singapore shares fell for a second day on weak oil prices, but gained 0.56 percent over the week.
The oil & gas index was 1.3 percent lower, with oil-rig builder Keppel Corp down over 2.5 percent. Indonesian stocks ended marginally higher. The index had eased slightly earlier in the day, shrugging off a 25-basis-point rate cut by the central bank after market hours on Thursday. The index gained 0.17 percent this week. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent.
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