SE Asia Stocks-Tumble as Hong Kong chaos, trade deal uncertainty hurt sentiment

Credit: REUTERS/ALY SONG

Southeast Asian markets closed in the red on Monday, with Thailand falling the most, as the latest escalation of violence in Hong Kong and uncertainty surrounding U.S.-China trade deal tempered sentiment.

By Anushka Trivedi

Nov 11 (Reuters) - Southeast Asian markets closed in the red on Monday, with Thailand falling the most, as the latest escalation of violence in Hong Kong and uncertainty surrounding U.S.-China trade deal tempered sentiment.

The Hong Kong police fired live rounds of ammo at protesters, critically injuring one, as the Chinese-ruled territory spiralled into rare working-hours violence in its 24th straight week of pro-democracy unrest.

Hong Kong's Hang Seng index .HSI shed 2.6% to mark its biggest single-day drop in more than three-months while Chinese stocks also declined, with the Shanghai index .SSEC falling the most in over four months.

The collapse in Hong Kong's main index "as protests there dangerously escalate, is the culprit behind Asia's sell-off", Jeffrey Halley, senior market analyst, Asia Pacific at OANDA said in a note.

"It is a reflection of the increased fears of direct mainland intervention in the territory. That fear will hang over regional markets this morning, although its effect may be limited time-wise," he added.

Leading losses in the region, the Thai benchmark .SETI shed 1%, weighed by financial and consumer stocks.

Siam Commercial Bank SCB.BK fell 2.5% while chemical developer Indorama Ventures PCL IVL.BK dropped 3.8% after posting a slump in quarterly profit.

Also damaging the overall sentiment was U.S. President Donald Trump's remark on Friday that he had not agreed to rolling back the U.S. tariffs sought by China, which contradicted earlier reports of officials confirming the arrangement.

Singapore's main index .STI tumbled as much as 1.1% to mark its worst session in over a month amid broad-based losses.

Tech stocks faltered following Venture Corp's VENM.SI results last Friday, which were not very encouraging, while financials came under pressure after Southeast Asia's top lender DBS Group Holdings DBSM.SI flagged a weaker 2020, said Nicholas Yon, equity research analyst at Lim & Tan Securities.

Local property developers exposed to the Hong Kong region such as Hongkong Land Holdings HKLD.SI and Jardine Strategic Holdings JSH.SI also traded lower.

Indonesian shares .JKSE followed suit, as coal miner Bayan Resources BYAN.JK dived 19.4% and poultry feed producer Charoen Pokphand Indonesia Tbk PT CPIN.JK lost 4.3% to dominate losses on the benchmark.

The Philippine index .PSI closed at a near two-week low.

Malaysian shares .KLSE dipped after data showed September's industrial production rose 1.7% from a year earlier but came in slower than August as manufacturing and mining output declined.

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SOUTHEAST ASIAN STOCK MARKETS

Change on the day

Market

Current

Previous close

Pct Move

Singapore

3240.65

3264.3

-0.72

Bangkok

1622.12

1637.85

-0.96

Manila

8009.38

8065.76

-0.70

Jakarta

6148.74

6177.986

-0.47

Kuala Lumpur

1608.15

1609.73

-0.10

Ho Chi Minh

1016.75

1022.49

-0.56

Change so far in 2019

Market

Current

End 2018

Pct Move

Singapore

3240.65

3068.76

5.60

Bangkok

1622.12

1563.88

3.72

Manila

8009.38

7,466.02

7.28

Jakarta

6148.74

6,194.50

-0.74

Kuala Lumpur

1608.15

1690.58

-4.88

Ho Chi Minh

1016.75

892.54

13.92

(Reporting by Anushka Trivedi in Bengaluru; Editing by Rashmi Aich)

((Anushka.Trivedi@thomsonreuters.com; +918067491413;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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