Most Southeast Asian stock markets extended their decline on Wednesday, with Thai shares plunging to a three-month low as they played catch-up with regional peers after a holiday and as the energy sector took a hit from a slump in oil prices.
The Stock Exchange of Thailand index closed 35.19 points or 2.12% lower to 1,623.37, marking their lowest close in more than three months. PTT Plc shed 3.5% and PTT Exploration and Production Plc gave up 7.6%.
Oil fell to its lowest since late August on Wednesday, pressured by worries that demand is weakening and supply ample even as US sanctions loom on oil exporter Iran.
"Aside from fears over the trade war's effects on GDP and growth, the oil prices also have a large impact on our energy sector. The negative trend in energy stocks can continue if global prices remain affected," said Teerada Charnyingyong, an analyst with Phillip capital Thailand.
Markets in Thailand were closed for Chulalongkorn Memorial Day on Tuesday when the rest of Southeast Asia marked losses across the board.
Indonesian stocks closed 1.5% lower, as sector heavyweight PT Telekomunikasi Indonesia Tbk shed 4.9% and wireless telecom provider PT XL Axiata Tbk lost 2.1%.
Vietnamese shares posted their fifth straight session of losses, closing 1.8% lower. Petrovietnam Gas Joint Stock Corp lost 7% and food processor Masan Group Corp shed 3.2%. The index has notched losses of over 3.7% this week.
Philippine stocks slipped nearly 1%, as financial and real-estate stocks weighed on the index. Investment company Ayala Corp lost 0.8% and lender BDO Unibank Inc fell 0.7%.
Malaysian shares erased gains in early trade to close 0.5% lower, posting their fifth consecutive day of losses. Telecom operator Axiata Group Berhad shed 2.5% and lender CIMB Group Holdings Berhad lost 0.9%.