Fall on Fed rate hike view; Indonesia snaps 8 days of gains

(Nov 9): Southeast Asian stock markets fell on Friday and wiped out gains made in a post-U.S. midterm election rally on rising chances of a U.S. Fed rate hike in December, with Indonesia losing the most. 

The U.S. Federal Reserve held rates steady on Thursday but remained on track to continue gradually raising borrowing costs, pointing to healthy economic prospects that were marred only by a dip in the growth of business investment.

It has raised rates three times this year and is widely expected to do so again next month. According to the CME Group's FedWatch tool, the likelihood of Fed raising rates by another 25 basis points in December is 75%.

Indonesian shares snapped an eight-session winning streak and closed 1.7% weaker at a one-week low. For the week, the key stock index fell 0.5%.

Consumer non-cyclicals were the biggest drag on Friday with Unilever Indonesia shedding 4.7% to its lowest close since mid-January 2017.

Philippine shares declined about 1% to a 2-week closing low, hurt by losses in telecom and industrial stocks. For the week, the key stock index fell 1.2%.

Globe Telecom fell 5.2% to its lowest close since mid-July, while construction firm DMC Holdings Inc shed over 1%.

Singapore shares fell with industrial and energy stocks being the biggest drag. 

Conglomerate Jardine Matheson Holdings dropped 0.6%, while Keppel Corp shed 1.6%.

Thai shares declined 0.8%, weighed down by energy stocks as crude prices fell to multi-month lows, pressured by rising supply and concerns of an economic slowdown.

PTT PCL slipped 1.5%, while Thai Oil fell 4.7% after reporting a 40% drop in quarterly net income.

Malaysian shares closed 0.8% lower. with material stocks leading the decline. Press Metal Aluminium Holdings fell 2.4%, while chemicals producer Petronas Chemicals Group closed 1% lower.



  Change on day                                    

  Market          Current      Previous    Pct Move


  Singapore       3073.49      3093.24     -0.49

  Bangkok         1670.97      1681.73     -0.79

  Manila          6968.82      7035.71     -0.95

  Jakarta         5874.154     5976.806    -1.72

  Kuala Lumpur    1708.09      1721.42     -0.77

  Ho Chi Minh     914.29       926.28      -1.29


  Change on year                           

  Market          Current      End 2017    Pct Move

  Singapore       3073.49      3402.92     -9.55

  Bangkok         1670.97      1753.71     -4.86

  Manila          6968.82      8558.42     -18.57

  Jakarta         5874.154     6355.654    -7.58

  Kuala Lumpur    1708.09      1796.81     -4.94

  Ho Chi Minh     914.29       984.24      -7.11