Most Southeast Asian stock markets gave up early gains on Monday to close lower on uncertainty over a US tax reform deal, while Vietnam shares closed at their highest in nearly a decade. World stock markets moved further away from recent record highs as US Senate Republicans unveiled a new tax plan that differs from the House of Representatives' version and there are few signs of a compromise.
"Digesting tax reform banter is an unsavoury business as even the ambient noise is triggering unusual moves across asset classes," Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, wrote in a note. "Besides with Christmas just around the corner, investors will be more inclined to book year-end profits, adding to sell-off momentum."
Vietnam shares extended gains into a seventh session and closed 1.3 percent higher. They have climbed more than 32 percent so far this year, making them the region's best performer. Food processor Vietnam Dairy Products Joint Stock Co was the biggest boost, rising 6.2 percent to a record closing high.
Philippine shares dropped 1.2 percent, dragged by industrial and real estate stocks. SM Investments Corp ended 2.8 percent lower, while Ayala Land declined 3 percent. The market fell on profit-booking in stocks which saw steep rises in the last few sessions, said Fio Dejesus
of Manila-based RCBC Securities. Singapore shares closed marginally lower with gains in industrials outweighed by losses in financials. DBS Group Holdings Ltd was the biggest drag with a decline of 1.1 percent. Thai stocks dropped for a third straight session and hit their lowest close since October 19. Airports of Thailand Public Co Ltd closed 1.3 percent lower, while Total Access Communication PCL ended down 6.3 percent.
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