BANGKOK, Feb 6 2018 : Southeast Asian shares suffered heavy losses today, extending the rout to a second day, with most of the markets wiping out January’s gains, as a sell-off pummeled markets across the world.
Wall Street plunged in highly volatile trading, with the S&P 500 and Dow Industrials indices slumping more than 4 percent, as the Dow notched its biggest intraday decline in history with a nearly 1,600 point drop.
Investors fled from equities, spooked by a sharp rise in U.S. bond yields following Friday’s data that showed U.S. wages increasing at the fastest pace since 2009 with lower unemployment, festering concerns over higher inflation and potentially higher interest rates.
However, Taye Shim, head of research at Mirae Asset Sekuritas, said the market reaction was slightly exaggerated.
The correction is likely to continue for a while and presents a good opportunity for investors to collect attractive assets, said Shim.
Vietnam, which as of Friday’s close was the only Southeast Asian stock market with double-digit percentage gains this year, slumped as much as 6.3 percent in the session, its steepest intraday percentage decline since October 2001.
Malaysian shares plunged as much as 3.1 percent, in their biggest intraday percentage drop since April 2013.
Philippine shares fell as much as 2.7 percent, led by losses in financials.
Philippine annual inflation accelerated much faster than expected in January, data showed, increasing the chances of an interest rate hike this week.
Index heavyweights BDO Unibank Inc fell as much as 2.9 percent, while Ayala Corp slumped to a two-month low.
Singapore shares retreated as much as 3.6 percent, in their biggest intraday drop in over a year, as financial stocks pulled down the index.
Indonesian shares fell as much 2.3 percent, marking their biggest drop in 14 months.
Thai shares retreated as much as 2.7 percent, posting their biggest intraday percentage drop in 15 months. – Reuters