Southeast Asian stock markets pulled lower on Tuesday amid foreign outflows ahead of the Federal Reserve's policy meeting, with the Thai benchmark hitting its lowest in more than four weeks as investors awaited an interest rate decision. Bangkok's SET index was down 1.1 percent at 1,531.53, the lowest close since April 1. Shares of Kasikornbank lost almost 3 percent while Krung Thai Bank eased 1 percent, and were among the most actively traded.
Thailand's central bank is expected to leave its policy rate steady on Wednesday after a surprise cut last month, a Reuters poll showed, despite calls for further easing to weaken the baht and boost a sputtering economy. Indonesia's index, which earlier fell as much as 1.54 percent, after having dropped 3.5 percent on Monday, ended a tad lower. Malaysian shares extended losses to a second session, while Singapore and the Philippines, which were both rising over the past three days, also fell. Vietnam is closed Tuesday through Friday for national holidays. Most markets reported a net foreign selling on the day, including Thailand's 2.8 billion baht ($85.97 million), Indonesia's 1.82 trillion rupiah ($140.1 million) and the Philippines' 619 million peso ($14 million), stock exchange data showed. The two-day meeting of the Federal Open Market Committee starts later in the day.