SINGAPORE, April 23 — South-east Asian stock markets were subdued on today, with Vietnam and Indonesia shares declining the most as investors exited equities after US bond yields rose to a multi-year peak.
US 10-Year treasury yields hit 2.968 per cent, their highest since January 2014, a jump widely seen as a technical shift in the market following a large selloff of bonds.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent.
Indonesian shares shed 0.49 percent with financials leading the decline. PT Bank Central Asia Tbk fell as much as 1.2 per cent while PT Bank Rakyat Indonesia (Persero) Tbk slipped as much as 2.2 per cent.
Indonesia's index of 45 most liquid stocks fell 0.66 per cent.
“We could argue that funds could move back to high-yeilding assets with a relatively lower risk profile. But then again emerging market funds sometimes have a different profile altogether,” said Fio De Jesus, an equity research analyst with RCBC Securities in Manila.
Malaysian stocks fell 0.28 per ent weighed down by financials and telecom stocks. Malayan Banking Bhd dropped 0.37 per cent while Axiata Group Bhd slid nearly 1 per cent
Vietnam's benchmark index slid as much as 0.72 per cent as consumer staples dragged down the index.
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) closed books for its US$864 million-US$921 million (RM3.36 billion-RM3.59 billion) IPO last week, the biggest in the country's history. The IPO involved sale of 164 million shares, representing 14.1 per cent of Techcombank's equity capital.
The Thai index was nearly flat as losses in energy sector were levelled by gains in industrials. Thailand's customs-cleared annual exports rose at a slower pace in March compared with the previous month.
Singapore index was the only gainer in the region, rising 0.35 per cent with financials leading the gains. — Reuters
