Most Southeast Asian stock markets closed lower on Tuesday as investors continued to digest hawkish comments from US Federal Reserve officials last week. Fed Chair Janet Yellen said on Friday the case for a rate hike was strengthening, but provided little detail on when it would next move. Traders now await the August payrolls report due on Friday, which is likely to miss expectations, for further clues on the US economy.
"There is a good chance that the rate hike will happen in December, rather than in September," said Mikey Macainag, an analyst with Philippines-based Sunsecurities Inc "But if the US payrolls data is good, we can expect the rate hike in September There is going to be a continuation of this bull market." Philippine shares fell for a fifth consecutive session, led by telcos including sector heavyweight PLDT Inc.
With most of the catalysts like earnings and GDP numbers already out and the absence of any market-stealing development, stocks are in a correction phase, said Manny Cruz, an analyst with Asiasec Equities Inc in Manila. Vietnam shares extended gains into a third straight session, helped by energy stocks including Petrovietnam Gas Joint Stock Corp as global crude prices rose on production suspensions in the US Gulf due to an expected tropical storm and speculation that producers meeting in Algeria next month will act to prop up prices. Thai shares eked out marginal gains, shrugging off disappointing July manufacturing output data. Asian shares outside Japan gained 0.6 percent, recovering around half of Monday's loss.