Southeast Asian stock markets closed lower on Thursday, mirroring Asian peers, as investors turned cautious ahead of the release of US economic data later in the day. Investors are waiting for a range of economic indicators, including the third revision of US third-quarter gross domestic product, to gauge the strength of the world's largest economy. Durable goods orders for November and weekly initial jobless claims are also scheduled to be released.
MSCI's broadest index of Asia-Pacific shares outside Japan erased modest early gains to slip 0.7 percent as of 0935 GMT. Philippines closed 1.5 percent lower, hitting its lowest closing level since February 3, dragged down by industrial and consumer stocks. Shares of DMCI Holdings Inc closed 2.7 percent lower, while JG Summit Holdings Inc dropped 4.7 percent. The Philippine central bank held benchmark rates steady, as widely expected, after market hours, saying inflation was expected to remain within its 2017 and 2018 comfort range of 2-4 percent.
Jakarta hit a near 6-month closing low, falling for an eighth straight session, weighed down by consumer staples and financials. Cigarette maker Hanjaya Mandala Sampoerna Tbk PT lost 2.9 percent, while Indofood Sukses Makmur Tbk PT shed 1.7 percent. "Simply, US policy uncertainties, lack of positive sentiment from the domestic front, and continued foreign selling" are weighing on the markets, said Taye Shim of Daewoo Securities in Indonesia.
"I think they (traders) are less confident of the emerging market economies, including Indonesia." Singapore shares closed at their lowest in more than three weeks, as financials and industrials lost ground. Oil and gas stocks also took a hit after global oil prices fell on the back of an unexpected rise in US crude inventories last week. Rig builder Keppel Corporation Ltd was down 1.19 percent, while DBS Group fell 1.3 percent. Malaysia and Thailand both hit 3-week closing lows, while Vietnam fell 0.4 percent.