Southeast Asian Stocks: Extend drop as investors head for the exit
BANGKOK, June 4 – Southeast Asian stock markets fell today as investors dumped risky assets across the region on heightened fears of a global slowdown after disappointing data from US and China.
Indonesia’s Jakarta Composite was one of the region’s worst performers today, losing 3.8 per cent. The index had been among Asia’s top gainers since the 2008 financial crisis.
Philippines’ benchmark index, which hit a record high last month, fell 3.4 per cent.
Earlier in the day, Asian share dived, with Tokyo stocks slumping to a 28-year low, on fears of a nightmare scenario of euro-zone breakup, US economic relapse and a sharp slowdown in China.
While South East Asian countries sport relatively healthier economic growth than larger regional or global peers a slowdown in external demand is expected to take its toll hitting markets at a time when investors remain risk-averse.
Analysts at Malaysia’s Affin Investment Bank said in a note to clients that weak manufacturing activity across the globe points to a further slowdown in growth over the second quarter in South East Asia.
Singapore’s Straits Times index fell 1.7 per cent to its lowest level in nearly five months led by commodities trader Olam International which slumped 5 per cent. Global Logistic Properties fell 4.3 per cent.
Thailand was closed for a public holiday. – Reuters