Most Southeast Asian stock markets fell on Monday on concerns about foreign fund outflows from emerging markets to better-yielding US assets as solid jobs data cemented expectations of more rate hikes by the Federal Reserve.
US job growth surged more than expected in June, signalling that the Fed could be on course for a third interest rate hike this year despite sluggish wage gains. "Though this (upbeat jobs figures) signifies a strong recovery in the US economy, there are also concerns that a rate hike is looming in the United States," said Lexter Azurin, a senior analyst with Manila-based AB Capital Securities.
Philippine shares ended 0.7 percent lower, their biggest drop in more than one week. Telecom company PLDT Inc led the decline, falling 3.3 percent to post its lowest close in nearly seven weeks. Malaysian shares fell 0.2 percent to close at their lowest since April 21. Petronas Chemicals Group was the biggest drag, falling 2.8 percent to close at its lowest in more than six months, while Genting Bhd dropped 1.7 percent.
Vietnam shares dropped 1.2 percent, their biggest fall in nearly seven months. Fiachra Mac Cana, head of research at Ho Chi Minh Securities, called this a "long overdue correction". Indonesian shares fell 0.7 percent to close at their lowest in three weeks after the main index opened an hour late due to a technical glitch. Unilever Indonesia fell 2.9 percent, while Bank Rakyat Indonesia shed 2.2 percent. An index of the country's 45 most liquid stocks dropped 1 percent.
Singapore shares bucked the trend to end 0.5 percent higher, backed by strong performances in financial and telecom stocks. DBS Group ended 0.8 percent higher, while Oversea-Chinese Banking Corp and Singapore Telecommunications gained 1 percent each. Thailand was closed for a holiday.