Southeast Asian stocks subdued; Malaysia falls

28 Nov, 2018

Malaysian shares fell 1 percent to a four-week closing low on Tuesday, dragged by casino operator Genting Malaysia Bhd and its parent, while other Southeast Asian markets were subdued after US President Donald Trump seemed to thwart hopes of a trade truce with China. Genting Malaysia slumped 16.7 percent to its lowest close since Sept. 9, 2010 after the company sued Walt Disney Co and Twenty-First Century Fox Inc, accusing them of abandoning a contract related to its planned construction of the first Fox-branded theme park.
Genting Malaysia's parent company, Genting Bhd, dropped 7.5 percent to its lowest close since June 2010.
Meanwhile, broader Asian markets were muted after Trump said in an interview with the Wall Street Journal that he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently.
Trump said it was "highly unlikely" he would accept China's request to hold off on the increase, planned for Jan. 1.
Investor sentiment remained jittery on US-China trade relations with no high hopes of a positive outcome from the meeting between Trump and his Chinese counterpart at the G20 summit in Argentina, Samuel Siew, an investment analyst with Phillip Futures, said in a note.
Philippine shares edged higher, helped by financials and industrials. Metropolitan Bank and Trust Co gained 3.6 percent, while Aboitiz Equity Ventures Inc rose 3.8 percent.
Indonesian shares closed slightly lower, dragged by material and telecommunication services stocks.
Indonesian President Joko Widodo expressed pessimism that the United States and China will resolve their trade dispute when the leaders of both countries meet in Argentina.
Indonesian shares have declined 5.4 percent this year as investors continue to cut their risk appetites, partly due to the prevailing trade tensions. Thai shares edged higher after data showed strong October factory output data.

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