BANGKOK, Jan 4 — Southeast Asian stock markets slid today, with sharp falls in Malaysia and Singapore amid a selloff in Chinese stocks after weak factory activity data, and as economic numbers in the region still pointed to risks.
Late selling hit regional bourses as trading in Chinese shares was halted after the index tumbled 7 per cent, triggering a “circuit breaker”.
Kuala Lumpur’s composite index ended down 2.3 per cent and Singapore’s Straits Times Index was 1.6 per cent lower, both marking their biggest one-day decline since August 24.
Despite Singapore’s surprisingly strong economic growth in the fourth quarter, risks remain on the horizon, with potential capital flight that could result from further US rate hikes and/or fears of further deceleration in China, DBS Research said in a report.
Data released earlier in the day showed that operating conditions for Malaysian manufacturers continued to worsen in December.
Stocks in Thailand, Indonesia and Vietnam posted their biggest daily loss in more than two weeks while the Philippines hit an over-two-week closing low.
Fund flows were mixed, with the Philippines and Indonesia notching net inflows worth 130 million peso (RM11.9 million) and 84 billion rupiah (RM25.7 million) respectively, while Malaysia posted a net outflow of RM130 million, stock exchange data showed. — Reuters
