SINGAPORE: Southeast Asian stock markets fell on Monday, in line with broader Asia as a trade spat intensified between the world’s top two economies.
Fears of a global trade war also added to pressure on oil prices. U.S. oil prices fell 1.9 percent following a 2.7 percent slump in the previous session.
U.S. President Donald Trump said he was pushing ahead with hefty tariffs on $50 billion of Chinese imports on Friday, prompting China to immediately respond in kind.
“Given that both sides seem to suggest that further escalation of hostilities may be possible, markets are expected to see more volatility, and industrial companies with significant proportion of revenues from overseas will be thehardest hit, ” Mizuho Bank analysts said in a note.
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Philippine shares slumped as much as 2.7 percent to their lowest in since April 2017 and were headed for a third session of fall.
Holding firms, banks and industrials were the biggest losers. SM Investments Corp fell 3 percent, JG Summit Holdings declined more than 5 percent and International Container Terminal Services Inc dropped 2.4 percent.
Singapore shares fell 1.7 percent to their lowest since mid-October, dragged by financials. Heavyweight DBS Group Holdings Ltd and United Overseas Bank Ltd both declined nearly 3 percent.
Exports grew at their fastest pace in seven months in May, boosted by an extended surge in pharmaceutical shipments, though the heated Sino-U.S. trade dispute is clouding the outlook for the trade-dependent city state.
Thai share declined for a fourth consecutive session and hit their lowest since mid-November. PTT Exploration and Production PCL and PTT PCl fell 4.1 percent and 2 percent, respectively.
Malaysian shares fell up to 1.5 percent, extending their decline into a sixth session, weighed by telecom and financial stocks.
