Indonesia shares dive to over 4-month low, SET loses again

Indonesian shares plummeted to their lowest since mid-December on Wednesday, while the Stock Exchange of Thailand closed below 1,7800 points, as a rise in US bond yields to a multi-year high triggered a sell-off in riskier assets.

The Jakarta stock exchange, which ended down 2.4%, saw its steepest loss in a day since November 2011, dragged down by financials.

Investors are slowly reducing US dollar-funded carry trades in emerging markets after a broad rally of the benchmark currency was fuelled by worries over inflation and bond supply in the United States and a subsequent spike in Treasury yields.

US benchmark 10-year Treasury yield rose to 3% for the first time in more than four years on Tuesday.

Foreign investors have been dumping riskier assets and the outflow in April was close to 7 trillion rupiah, said Taye Shim, head of research at Mirae Asset Sekuritas.

"I think primarily the key reason is that the central bank of Indonesia is maintaining a stubbornly low dovish stance in terms of their monetary policy," he said.

Indonesia's index of 45 most liquid stocks fell 3.2%.

The SET main index shredded 8.68 points or 0.49% to close at 1,779.52, in trade worth 65 billion baht. Kasikornbank Plc was among the losers, falling 4.50 baht or 2.31% to end the day at 190 baht. 

Philippine shares closed at their lowest in over a year as industrials weighed on the index. Index heavyweight SM Investments Corp, which was the biggest drag with a 1.4% fall.

Industrials and financials dragged the Singapore stock exchange 0.5% lower. The city-state's biggest lender DBS Group Holdings shed 0.7%, while Keppel Corporation slipped as much as 3.2%.

Malaysian shares fell 0.7% to close at their lowest in over two weeks as financials faltered. Public Bank Bhd fell as much as 1.2%.

The Vietnam markets were closed for a holiday.