Published on 02 Oct 2019. | Source: thestar.com.my
SINGAPORE: Southeast Asian stock markets fell on Wednesday, as a slump in US manufacturing activity renewed fears of a global growth slowdown and underscored the damaging effects of the prolonged trade war with China.
US manufacturing activity tumbled to a more than 10-year low in September as lingering trade tensions weighed on exports.
"The slowdown in the U.S. is probably having a larger impact on those countries that are major trade players," said Joel Ng, an analyst at KGI securities. "The moves are a bit more exaggerated because of lower liquidity."
Trading volumes were low across Southeast Asian markets due to the week-long holiday in China for the National Day.
Singapore stocks shed 1%, with financials accounting for most of the losses.
The trade-reliant city state has been hit hard by the prolonged Sino-U.S. trade war, with a flood of weak data including the dismal August manufacturing figures sparking fears of a recession.
Shares of top lender DBS Group Holdings dropped 1.3%, while those of United Overseas Bank Ltd shed 1.2%.
Philippine stocks dropped 0.9% and were headed for a fourth consecutive session of losses.
Property and financial stocks were hit the most, with SM Prime Holdings and BDO Unibank Inc shedding 1.6% and 1.5%, respectively.
This came after the central bank governor said on Tuesday banning online gambling would have little impact on the economy.
The country has initiated a study into the economic impact of halting online gambling after China urged Manila to outlaw the cross-border activities it says pose money-laundering risks.
These firms have lifted property demand and retail spending by drawing visitors from China who work for these online gambling operators.
Malaysian stocks dipped 0.5% on the back of financials and telecoms, with PUBLIC BANK BHD and Axiata Group Bhd shedding 0.5% each.
Thai stocks fell 0.6%, with top listed oil explorer PTT PCL losing 0.6%.
The company along with Gulf Energy Development Pcl is set to build a 40.9 billion baht ($1.34 billion) gas terminal and port on the country's east coast. - Reuters
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