Most Asean markets fall after Yellen comments; Philippines over 10 month low

http://www.thestar.com.my/business/business-news/2016/12/20/most-asean-markets-fall-after-yellen-comments-philippines-over-10-month-low/

Dec 20, 2016

SINGAPORE: Most Southeast Asian stock markets fell on Tuesday after U.S. Federal Reserve Chair Janet Yellen gave an upbeat view of the jobs market, strengthening the rate hike outlook for next year.

Yellen said on Monday that the U.S. labour market had improved to its strongest in nearly a decade, suggesting that wage growth was picking up and underscoring expectations that the central bank would continue to raise interest rates next year.

The Fed’s hawkish view on the pace of rate hikes in 2017, along with President-elect Donald Trump’s promises of tax cuts and spending, have boosted sentiment about the U.S. economy and prompted capital outflows from emerging markets.

Philippine shares fell as much as 1.77 percent to their lowest in over 10 months, dragged down by industrial and financial stocks, after declining 2 percent in the previous session.

“It is a downward spiral and (fallout from the Fed) is one of the main reasons,” said Joseph Roxas, president at Manila-based Eagle Equities Inc.

“The market is more volatile than others while being less liquid as companies are family-controlled with a maximum of 40 percent out in the market in many cases,” said Roxas, adding this made it move faster in either direction.

Conglomerate JG Summit Holdings Inc dropped 3 percent to its lowest since Feb. 12, while Metro Pacific Investments Corp fell 4.1 percent to a more than seven-month low.

Vietnam shares dropped up to 1.01 percent to hit a two-week low, with consumer staples leading the decline.

Recently listed Saigon Beer Alcohol Beverage Corp fell up to 3.8 percent, while Vietnam Dairy Products JSC declined as much as 2.5 percent to a five-month low.

Singapore shares bucked the trend and were marginally higher in volatile trade, helped by consumer staples and telecom stocks.

Singapore Telecommunications Ltd jumped 1.1 percent, heading for its first gain in five sessions, while palm oil producer Wilmar International Ltd climbed 2.2 percent to its highest since February 2013.

MSCI’s broadest index of Asia-Pacific shares outside Japan were little changed after the Bank of Japan kept its monetary policy steady as widely expected. – Reuters