SE Asia Stocks-Vietnam slumps, Singapore snaps 2 days of gains

Vietnam stocks slumped 2% to an eight-month closing trough White Singapore shares snapped two straight sessions of gains on Wednesday with financials leading the decline.

Broader investor sentiment was low as US threats of tariffs on an additional US$200 billion worth of Chinese goods pushed the world’s two biggest economies ever closer to a full-scale trade war. Reuters reported.

Vietnam shares extended losses into a third session with financial services provider Vietcombank closing 3.6% lower.

Singapore’s FTSE Straits Times Index closed 0.8% lower, with Oversea-Chinese Banking Corp and DBS Group Holdings shedding 2% and 1.1%, respectively.

“If overall regional and China-centric trade flows decline, the Singapore economy will likely take a hit due to its dependence on trade and manufacturing activities,” OCBC Bank said in a note.

Thai shares snapped three consecutive sessions of gains and closed 0.4% lower. PTT Public Co fell 0.5% and Airports of Thailand dropped 1.2%.

Philippine shares rose 1.4% to a one-week closing high with industrials at the helm.

“Despite Philippine’s trade exposure to China and US being relatively high, given that a majority of the country’s growth is fuelled by domestic consumption, it is less susceptible to trade fluctuations as compared to other ASEAN countries,” OCBC Bank added.

SM Investments climbed 4.2%, while Ayala Land gained 2.1%.

Malaysian shares erased early losses to close marginally higher.

Earlier in the day, the central bank kept its key interest rate at 3.25% at its first policy meeting under the newly appointed central bank governor.

Indonesian shares closed 0.2% higher with Astra International being the biggest boost.