January 27, 2014 / 7:05 AM / 4 years ago

SE Asia Stocks-Tumble on Fed tapering worries, Chinese credit woes; Indonesia leads

Jan 27 (Reuters) - All Southeast Asian stock markets plunged
in early trade on Monday, led by Indonesia as emerging markets
remained under pressure on concerns over U.S. Federal Reserve
further tapering its stimulus this week and fears of a slowdown
in China.
    Indonesia's Jakarta Composite Index fell 2.9 percent
by midday, its lowest level since Jan. 10, led by financial
    "The Fed tapering policy and China's slowing growth caused
investors to lose confidence in emerging markets, especially in
Indonesia," said John Teja, director of Jakarta-based broker
Ciptadana Securities.
    "The big drop in Wall Street last Friday is also a reason
for foreign investors to take profit in local market," he said,
adding that foreign investors have been selling this morning on
a net basis "reversing net buying this past two weeks". 
    Fed officials are seen cutting bond-buying by another $10
billion at their regular two-day policy meeting beginning on
Tuesday, while investors continued to fret about the impact of
tightening credit conditions in China as Beijing seeks to curb
growth in high-risk lending., 
    The S&P 500 posted its worst week since June 2012 in the
week ended Friday as a selloff in emerging market assets fed
through to wholesale pullbacks in equities. 
    Singapore share index touched its lowest since
Sept. 4 at one point and was down 1.3 percent at 0615 GMT, led
by over a 3 percent fall in Jardine Matheson Holdings Ltd
    Malaysian shares were 0.9 percent down, hovering
around 3-1/2-month low, the Philippine index plummeted
1.7 percent, while Vietnam index, the best performer in
the region so far this year, was down 0.5 percent on
profit-booking in most large-cap stocks. 
    Thailand index fell 2 percent to 1,288, led by
energy and banks amid lingering political concerns a day after
one of the leaders of anti-government protests in Bangkok was
shot dead when violence erupted as demonstrators tried to block
early voting for an election next week. 
    "Thailand market was pressured by Fed tapering and local
political concerns," said Teerada Charnyingyong, a strategist
with Phillip Securities. 
    "We weigh those effect 50:50. Meanwhile, the support level
for this afternoon would be around 1,280 and likely that
foreigners would stay on selling side."
    Nomura in a research report said the current political
tensions in Thailand will only slow, but not derail, the
long-term development of the economy. 
    "Our new 12M SET index target is 1410 which factors in the
current weak domestic economy and gradual improvement in the
political situation in 2014."   
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 Change at 0613 GMT
 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   377.02        383.47       -1.68
 Singapore          3038.00       3075.99       -1.24
 Kuala Lumpur       1787.26       1802.57       -0.85
 Bangkok            1288.83       1314.63       -1.96
 Jakarta            4308.19       4437.34       -2.91
 Manila             6088.87       6191.50       -1.66
 Ho Chi Minh         557.14        560.19       -0.54
0 : 0
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