SINGPORE, Jan 9 — Most South-east Asian stock markets fell today while Asian peers edged up on the back of gains on Wall Street and in the US dollar.
US stocks ended higher on Friday, fuelled by optimism about President-elect Donald Trump, while the dollar stood tall against rivals after the latest US payrolls data indicated strong underlying wage growth, strengthening the case for more rate hikes in 2017.
Trump's presidential election win sparked a major realignment in markets, with expectations of tax cuts, fiscal spending and deregulation sending US bond yields and dollar higher, while prompting capital outflows from emerging economies.
“We are seeing how the dollar is peaking at least in the short term, showing signs that it might stabilise, and of course, the US bond rate is also stabilising in the short term. Those might be the factors that may have led to a rotation back into emerging markets,” said April Lee-Tan, vice president and head of research at Manila-based COL Financial.
Singapore shares hit their highest in over a month and were headed for a fifth straight session of gains.
Strong US jobs data is good for Singapore as most of the city-state's exports go to the United States, said Mikey Macainag, an analyst with Sunsecurities Inc.
Gains in Singapore were led by oil & gas stocks despite a fall in crude prices. Industrial conglomerate Sembcorp Industries Ltd gained as much as three per cent to its highest since April 21, 2016.
Philippine shares were flat after gaining six per cent last week as gains in telecom services and utilities were offset by losses in financials and consumer cyclicals.
“I think the consensus view right now is of course that investors are expecting a weak BOT (balance of trade) position, although we don't have any specific forecast for that,” said Lee-Tan, ahead of the release of the data, expected tomorrow.
Thai shares fell, dragged down by energy stocks with PTT Pcl, the country's largest energy firm, losing 0.3 per cent. — Reuters
