SE Asia stocks muted on Yellen's rate hike signal

SE Asia stocks muted on Yellen's rate hike signal

Singapore Exchange Ltd signage displayed inside the bourse's headquarters in Singapore. Stocks in Singapore and most Southeast Asian markets remained mused on Thursday. (Bloomberg photo)
Singapore Exchange Ltd signage displayed inside the bourse's headquarters in Singapore. Stocks in Singapore and most Southeast Asian markets remained mused on Thursday. (Bloomberg photo)

Southeast Asian stocks were subdued on Thursday as comments from US Federal Reserve Chair Janet Yellen hinted at steady interest rate hikes in 2017 and US president-elect Donald Trump's inauguration on Friday kept investors anxious.

Yellen said on Wednesday that it "makes sense" for the US central bank to gradually lift interest rates and that "waiting too long to begin moving toward the neutral rate could risk a nasty surprise down the road".

Yellen's bullish comments overnight strengthened the dollar, and "the gains at their end spilled over into Asian markets", said Victor Felix, an analyst with AB Capital Securities in Manila, adding that investors are now watching out for Trump's inauguration.

Philippine shares closed 1.25% higher, posting their biggest percentage gain in more than a week.

Real estate and industrial stocks led the index with Ayala Land Inc and Universal Robina Corp rising 3% and 3.8%, respectively.

The market expects a "good" GDP report for 2016 and better-than-expected corporate earnings, said Mikey Macanaig, analyst with Sun Securities Inc, adding a weaker peso and the dollar index reaching the 100-point mark are driving the market higher.

The Stock Exchange of Thailand ended 0.38% lower, hit by losses in consumer staples and financials.

Stock markets in Vietnam, Singapore, Malaysia and Indonesia remained muted, while MSCI's broadest index of Asia-Pacific shares outside Japan was flat at 9.40 GMT.

Southeast Asian stock markets

 

 

Current

Previous

% change

Indonesia

5,298.94

5,294.78

+0.08

Malaysia

  1,666.51

1,665.02

+0.09

Philippines

7,246.08

7,156.36

+1.25

Singapore

3,008.22

3,000.22

+0.27

Vietnam

682.31

683.28

-0.14

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