Most Southeast Asian stock markets fell on Thursday as worries over a prolonged global economic recovery from the damages caused by COVID-19 pandemic were exacerbated by the World Health Organization's warning that the virus may never go away.
The World Health Organization said on Wednesday the new coronavirus that causes the COVID-19 disease could become an endemic like HIV and may never go away.
"Asia today is a sea of red, although like yesterday, it is not reflecting the extent of the Wall Street retreat," said Jeffrey Halley, Senior Market Analyst at OANDA.
In trade bellwether Singapore, stocks fell 1.9% to their lowest level since April 24. The benchmark extended losses for a third session, dragged down by national carrier Singapore Airlines, which tumbled as much as 7.5% in heavy volume to its lowest since October, 1998 ahead of results. The national carrier later on Thursday reported its first-ever annual loss.
Thai index fell for a second straight session on Wednesday, closing down 1.1%.
Optimism over the second phase of easing the country's lockdown seems to be fading after much of the news has already been priced in, while fears about a second wave of virus infections grow after a resurgence of new cases in many countries, analysts at Phillip Securities said in a note.
Thai hotel operator Central Plaza Hotel fell 3.1% after reporting a quarterly loss, compared with a year-ago profit, while Pruksa Holding slipped up to 2.8%, a day after profit dropped in the first quarter.
Philippine stocks snapped two straight sessions of losses to close half a percent higher.
Investors parked funds into the Philippine market as they grappled with regional downbeat remarks from the US Fed Chair, along with worries over the market's valuation, Luis Limlingan, managing director at Regina Capital Development Corp, said. The biggest boosts to the index SM Prime Holdings and Globe Telecom jumped 7.2% and 3.1%, respectively. The Indonesian benchmark also closed lower, dented by financials.
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