Southeast Asian stocks fall amid global sell-off

Published: May 30, 2018 14:09:20 | Updated: June 01, 2018 17:46:23


Southeast Asian stock markets slipped on Wednesday amid a global sell-off that was provoked by uncertainty over Italy's elections.

Investors fear that the repeat elections may become a de-facto referendum on Italian membership of the currency bloc and the country's role in the European Union.

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Eyes were also on the United States after Washington said it will release a list of some $50 billion worth of Chinese goods that will be subject to a 25 per cent tariff by June 15.

Asia shares ex-Japan lost 1.5 per cent, while Wall Street's main indexes fell up to 1.6 per cent overnight, reports Reuters.

Asian bourses may attempt to trade on a slight risk-off tone amid the ratcheting higher of geopolitical and trade tensions, OCBC Treasury Research said in a note.

Singapore shares fell over 2.0 per cent, dragged down by financials, with DBS Group, Oversea-Chinese Banking Corporation and United Overseas Bank leading the losses.

Malaysia slipped up to 2.3 per cent to touch a more than five-month low. Tenaga Nasional, the biggest drag on the index, extended losses to fall as much as 5.0 per cent.

The Indonesian index fell as much as 0.9 per cent ahead of a central bank policy meeting later in the day, where it is expected to raise its benchmark interest rate.

An index of the country's 45 most liquid stocks fell nearly 0.9 per cent.

Shares in Vietnam fell over 2.0 per cent, while the Philippines' benchmark index slipped as much as 1.4 per cent to its lowest in over one year.

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