SINGAPORE, March 31 — Singapore led declines across Southeast Asian stock markets today, as the boost from a US Federal Reserve statement this week scaling back expectations for interest rate hikes faded.
Singapore's Straits Time Index slid one per cent, on track for a quarterly loss of 1.3 per cent.
The Philippines lost 0.8 per cent and Malaysia 0.2 per cent, shrinking gains for the quarter to 4.2 per cent and 1.4 per cent respectively.
Thailand's SET slipped 0.2 per cent. However, the index is on track for a quarterly jump of 9.2 per cent.
US Federal Reserve Chair Janet Yellen on Tuesday emphasised the need to proceed “cautiously” on tightening policy, pushing back on a handful of her colleagues who have suggested another move may be just around the corner.
Southeast Asian markets, which rose strongly yesterday on the back of those comments, are now surrendering those gains.
“Yesterday's Yellen gains were temporary,” said Mixo Das, Asean equity strategist at Nomura in Singapore. “Market pricing of Fed hikes is already very dovish — not much room for it to move further lower.”
The Jakarta Composite index was little changed, but is set for a 4.8 per cent quarterly gain.
Vietnam, which fell in early trade, recovered to trade up 0.2 per cent, narrowing losses for the quarter to 1.4 per cent. — Reuters
