SINGAPORE, Feb 24 — Most South-east Asian stock markets retreated today amid selling in energy shares and mixed data from the region, with Singapore hitting a one-week low as better-than-expected growth failed to ease concerns about the impact of a global slowdown.
The key Straits Times Index dropped 2 per cent to the lowest since February 17, with 28 out of 30 stocks gauged by the index falling.
The city-state’s economy grew faster than estimated in the fourth quarter but a deeper contraction in the key manufacturing sector and a downgrade to trade growth for this year will keep pressure on policy makers to step up stimulus.
In Kuala Lumpur, shares were moderately down 0.6 per cent after the inflation rate in January surged to the fastest level in nearly two years but was not expected to lead to any hike of the country’s benchmark interest rate.
In Manila, stocks slipped 1.4 per cent as imports in December tumbled nearly 26 per cent from a year earlier.
The market will be closed today for a holiday.
Thai stocks and Indonesia were little changed, with shares in energy firms such as PTT and Perusahaan Gas Negara among losers. Vietnam climbed 1 per cent on gains in banking stocks.
Falling oil prices dampened global market strength and risk appetite, the Bangkok-based Asia Wealth Securities said.
“Some investors even think global slowdown may be more significant than expected and falling oil prices could prolong,” the broker said in a report.
Investors turned cautious in a weak reporting season.
Shares of Philippines’ Metropolitan Bank and Trust, for instance, dropped 1.6 per cent after it posted a 16.3 per cent fall in 2015 net income.
A survey by business advisory firm PwC showed chief executives in Asean were losing confidence in revenue growth as a gloomy global economy affected sales in the region. — Reuters
