SE Asia Stocks Weaker on Fed taper worries; US job data awaited

Business & Markets 2013
Written by Reuters
Wednesday, 04 December 2013 19:31
A + A - Reset
(04/12/13 19:01:32)
(Dec 4): All Southeast Asian markets fell on Wednesday, as the prospects for
an early reduction in the U.S. Federal Reserve's monetary stimulus, prompted
investors to sell their risky assets ahead of U.S. jobs data later this week.
The Philippines' main stock index fell 1.2 percent to a one-week low, led by
financials. Jakarta's Composite Index lost 1.1 percent, also led by financials.
Singapore's Straits Times Index fell 0.9 percent to a near two-month low.
Unexpectedly-strong factory activity data from United States, released last
week, has renewed the possibility of the Fed starting to taper its asset buying
programme, sooner than expected.
Investors are waiting for more clarity from U.S. employment data, out on Friday.
Many analysts expect the Fed to take a decision on reducing its bond
purchases at its March meeting, but some think that could be brought forward
to January, or at the extreme, later this month, if the employment data comes in
strong.
Thailand's stock market, which saw over 18.6 billion baht ($578.4 million) of
foreign outflows in five straight sessions through Tuesday, edged down 0.5
percent, from a near two-week closing high.
Thai financial markets calmed down on easing political tensions, after the
country's navy chief ruled out a coup, following days of anti-government
protests.
Malaysia's broader index, which hit an intraday record high on Tuesday, edged down 0.1 percent with $50.92 million in foreign outflows.
Vietnam's benchmark VN Index ended 0.1 percent down from a near six-month closing high, as stocks moved in mixed directions.