Indonesia stocks still plummet, SET ends lower

Indonesian and Vietnam stock markets plunged, while the Stock Exchange of Thailand slid on Thursday, as rising US treasury yields and a stronger dollar prompted foreign investors to trim holdings in emerging market equities.

Benchmark US Treasury 10-year yield edged above 3% on Wednesday and may likely reach levels last seen in mid-2011.

Indonesian stocks slumped 2.8% in their fifth straight session of losses, bringing their year-to-date losses to 7%.

The country's index of 45 most liquid stocks dropped 3.6% in the session.

Bank Central Asia fell 1.8%, while Telekomunikasi Indonesia (Persero) Tbk Perusahaan Perseroan slid 3.4%.

The rupiah has depreciated nearly 5% against the US dollar since late January as a broad rally in the greenback triggered capital outflows. The country's central bank intervened by buying sovereign bonds and selling foreign currency to arrest the rupiah's fall.

The Indonesian rupiah yield curve's sharp flattening suggests a build-up of rate-hike expectations, Standard Chartered said in a note. The Indonesian central bank has kept key interest rates unchanged for the past seven months.

"It's a tricky situation for the government and the central bank as they have to contemplate whether to focus on growth or stability," said Taye Shim, head of research at Mirae Asset Sekuritas.

The SET main index shredded 6.32 points or 0.36% to close at 1,773.20, in trade worth 48.64 billion baht. PTT Plc closed at 56.50 baht, down 1 baht or 1.74% and Siam Cement Plc plunged 6 baht or 1.27% to 468 baht.

Vietnam stocks also plummeted 3.3% to their lowest close in more than two months as financials and utilities weighed on the benchmark.

Petrovietnam Gas Joint Stock Corp was the biggest drag on the index, falling as much as 7%, its biggest intraday drop in over two years.

Philippine shares reversed earlier losses in the session to close 0.8% higher, buoyed by real estate stocks. Index heavyweight Ayala Land Inc rose 3%, while JG Summit Holdings Inc gained 3.8%.