January 31, 2018 / 4:30 AM / a year ago

SE Asia Stocks-Most fall as bond yield spike weighs on market

    * Philippines extends fall, down up to 2 pct
    * Indonesia bounces back from early decline
    * Malaysia closed for public holiday

    By Karthika Suresh Namboothiri
    Jan 31 (Reuters) - Most Southeast Asian stock markets fell
on Wednesday as the recent spike in global bond yields weighed
on equities, with Philippine shares extending their sharp
decline from Tuesday.
    Investors have showed scant reaction so far to U.S.
President Donald Trump's State of the Union address, and now
shifted their focus to the Federal Reserve's monetary policy
statement due later in the day, and a jobs report on Friday.

    The Fed is widely expected to keep interest rates unchanged,
and investors will be looking to its policy statement for fresh
hints on the outlook for interest rates this year.
    "Bond yields in the U.S. are rising, so there is a shift in
funds from emerging markets back to the U.S," said Lexter Azurin
from AB Capital Securities. 
    The U.S. Treasury 10-year note yield touched its
highest in nearly four years overnight, while 30-year bond yield
 climbed to its highest since May 2017.
    Higher yields are seen hurting equities as they increase
borrowing costs by companies and reduce their risk appetite.
Higher yields also present a fresh alternative to investors, who
may choose to allocate some of their money from equities to
    MSCI's broadest index of Asia-Pacific shares outside Japan
 fell for a third consecutive session, after
reaching record levels on Monday.
    Philippine shares dropped as much as 2 percent to
their lowest in over three weeks, but were on track to end the
month higher.
    Industrials were the top losers with SM Investment Corp
 shedding as much as 6.1 percent and Ayala Land
declining up to 2.3 percent.
    Singapore shares dropped as much as 0.6 percent as
banks took a beating.
    Oversea-Chinese Banking Corp fell to a three-week
low, while DBS Group Holdings declined for a second
consecutive session.
    Meanwhile, the city-state's total bank lending in December
rose from a year earlier, on the back of increased lending to
financial institutions and a rise in housing and bridging loans,
central bank data showed.
    Thai shares slipped, dragged down by energy stocks. 
   PTT Exploration and Production PCL dropped as much
as 2.1 percent to a more than one-week low, as oil prices fell
for a third straight session.
    Thailand's annual industrial output rose for a second
straight month in December, helped by higher production of
rubber, cars and car engines and petroleum, but missed
    Indonesian shares bounced back from early falls to
trade more than half a percent higher with Astra International
 rising over 3 percent, while Unilever Indonesia
 hit a more than one-month low.
    Malaysia was closed for a public holiday.

    For Asian Companies click;

 Change on the day                            
 Market             Current   Previous close  Pct Move
 Singapore          3534.35   3548.74         -0.41
 Bangkok            1823.87   1826.61         -0.15
 Manila             8785.12   8910.48         -1.41
 Jakarta            6620.597  6575.492        0.69
 Ho Chi Minh        1121.89   1110.56         1.02
 Change in 2018                               
 Market             Current   End 2017        Pct Move
 Singapore          3534.35   3402.92         3.86
 Bangkok            1823.87   1753.71         4.00
 Manila             8785.12   8558.42         2.65
 Jakarta            6620.597  6355.654        4.17
 Ho Chi Minh        1121.89   984.24          13.99
 (Reporting by Karthika Suresh Namboothiri; Editing by
Subhranshu Sahu)
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