Asean stocks soft as Opec-led supply cut extension disappoints

Southeast Asian shares ended flat to lower on Friday tracking weakness in Asian peers after an Opec-led decision to extend output cut fell short of expectations, triggering a sell-off in energy stocks.

At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries and some non-Opec producers agreed to extend a pledge to cut production to March 2018 but investors had expected a longer and/or deeper supply cut.

Oil prices edged up after plunging 5%, but stock markets still remained on the back foot.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1% after closing at a two-year high on Thursday.

"The drubbing in crude basically threw a wet blanket over the entire space (Southeast Asia)," said Emmanuel Ng, a strategist at OCBC Bank, Singapore.

"Most of our (Southeast Asian) markets have a similar structure in that energy and oil stocks are very big in terms of market-cap contribution to the overall index calculation, so I think the selling pressure in energy stocks is what is weighing down the markets," added Rakpong Chaisuparakul, a strategist with KGI Securities (Thailand).

Singapore shares fell 0.5%, snapping three straight days of gains, dragged by financials and industrials, but the index ended the week marginally higher. DBS Group dropped 1.1%, while Jardine Matheson Holdings Ltd shed 1%.

Indonesia ended 0.2% higher, led by consumer staples. Gudang Garam Tbk PT gained 0.9% and Sumber Alfaria Trijaya Tbk PT climbed 3.7%. 

However, the index ended the week 1.30% lower.

Malaysian shares remained largely unchanged with consumer cyclicals, healthcare and energy stocks weighing on the index.