SE Asia stocks fall sharply on US-China trade war worries

SINGAPORE, March 23 — South-east Asian stock markets fell sharply today as US President Donald Trump unveiled a plan to impose tariffs on Chinese goods, bringing the two countries closer to a trade war and unnerving investors across the globe.

China urged the United States to “pull back from the brink”, saying Beijing was not afraid to engage in a trade war should the case arise.

The escalating tensions took a toll on broader Asian shares, which weakened as much as 2.4 per cent, the steepest decline in a month-and-a-half.

“Hopefully... some agreement is reached between them in the next couple of weeks,” said Manny Cruz, an analyst with Asiasec Equities Inc in Makati City.

Singapore shares shed as much as 2.1 per cent on broad-based losses, with United Overseas Bank Ltd dropping 2.8 per cent.

Indonesian shares dipped as much as 2.7 per cent, with financials and consumer staples weighing on the benchmark the most.

The index of the country’s 45 most liquid stocks was as much as 3.4 per cent lower.

Indonesia should be hardest hit in the region in the event of a trade war due to the export-reliant nature of its economy, said Asiasec Equities analyst Cruz.

The bearish sentiment carried across the Strait of Malacca to Malaysia, where shares lost as much as 1 per cent, as financials and telecom services weighed. Genting Bhd fell 1.8 per cent.

Vietnam shares retreated from an all-time peak set yesterday, shedding as much as 2.5 per cent. The benchmark was on track to snap a nine-session winning streak.

Joint Stock Commercial Bank for Foreign Trade of Viet Nam lost as much as 4.9 per cent.

Philippine shares fell below the 8,000 mark for a second time this week, with financials and industrials leading the losses. The index fell as much as 2.1 per cent, wiping off most of the 2.7 per cent gain in the previous session.

Philippine index has lost about 3.3 per cent this week, setting it on course for a fifth straight week of losses.

Heavyweight SM Investments Corp fell 3.7 per cent while Ayala Land Inc was down 3.3 per cent. — Reuters