Most Southeast Asian stock markets closed lower on Tuesday as an escalation in the Sino-US trade dispute hurt risk appetite, while a weak peso piled on the Philippines' woes. Broader Asia also struggled after China and the United States imposed new tariffs on each other's goods on Monday, with neither side looking to back down and adding to worries about risks to global growth.
"The failure of China and the US to come to terms on the negotiation table... is creating weakness in major economies in Asia, and has resulted in most Southeast Asian equities to retreat from what they gained last week," said Manny Cruz, a Manila-based analyst with Asiasec Equities Inc.
Earlier this month, Chinese officials welcomed an invitation from Washington for a new round of trade talks but then scrapped plans for diplomatic discussions on Friday.
Philippine shares fell 1.4 percent, making them the top losers in the region, weighed down by real estate and financial stocks.
Property owner SM Investments and Bank of the Philippine Islands were the biggest burdens on the index, shedding 2.7 percent and 3.6 percent, respectively.
Indonesian shares slipped, hurt by consumer staples and material stocks. Unilever Indonesia Tbk PT was the top drag with a loss of 2.3 percent.
An index of the country's 45 most liquid stocks declined 0.2 percent. Malaysian shares fell 0.3 percent with telco Axiata Group Bhd shedding 4.4 percent, while Vietnam stocks edged lower, hurt mostly by banks.
Singapore shares closed 0.5 percent higher, extending gains into a fifth session, with Cruz attributing it to "window dressing" before the third quarter's close - a practice where portfolio managers try to improve the appearance of a fund's performance near the year- or quarter-end.
Comments
Comments are closed.