Southeast Asian shares were flat-to-weaker on Tuesday, in line with Asian peers after oil prices resumed their decline, and as fears of a global economic slowdown showed no sign of abating. Investors awaited cues from the US Federal Reserve and the Bank of Japan monetary policy meetings this week. Singapore's share index closed 1.4 percent down, the Philippines fell 1.9 percent, and Vietnam ended 0.9 percent weaker.
"Market gains would not last long especially amid heavy volatility in oil prices," said Teerada Charnyingyong, an analyst at Phillip Capital in Bangkok. "Regional markets including Thailand stock market would be trading sideways to sideways down for at least in the first quarter or in the 1H16 with worries on Chinese economy," the analyst said.
The US Federal Reserve and the Bank of Japan will hold policy meetings this week, with the Fed meeting scheduled for January 26-27 and BoJ gathering on January 28-29. Investors will look for hints on when the Fed intends to make a second interest rate hike, while there is speculation that the BOJ might opt for additional easing measures. Vietnam's benchmark VN Index ended down 0.85 percent on Tuesday in line with regional markets on investors' concerns ahead of the US Federal Reserve meeting and after fresh developments at the country's Communist Party congress.
Most bluechip stocks headed south, led by shares in the food, beverage & tobacco sector. Dairy products maker Vinamilk, the country's top firm by market value, dropped 2.54 percent. PetroVietnam Gas outperformed the market, rising 3.8 percent amid investors' expectations that the firm may benefit from government policies following changes to its business methods, analysts and traders said. The index, Southeast Asia's best performer last year, on Monday posted its biggest jump in nearly four years.