SOUTHEAST Asian stock markets fell on Monday, with the Philippines shedding more than 1.5 percent, as investors were risk-averse ahead of a widely expected rate hike by the US Federal Reserve later this week.
The possibility of a rate hike has been almost fully priced in by markets, and the focus would be now on whether the US central bank hints of further monetary tightening in 2017.
“I think it is risk-off ahead of Tuesday’s Fed meeting,” said Victor Felix, an analyst with AB Capital Securities in Manila.
“The news about the production cut seems to be immaterial,” he said referring to a decision by OPEC and non-OPEC producers to curb oil output in their first deal since 2001.
Brent crude futures soared to US$57.89 per barrel in overnight trading between Sunday and Monday, the highest level since July 2015.
Philippine shares declined as much as 1.6 per cent in their worst fall in nearly three weeks.
Financial and consumer non-cyclical stocks were the major losers with Ayala Land Inc being the worst performer, shedding 4.9 per cent.
Singapore shares fell as much as 0.6 per cent to a one-week low, hit by consumer services and industrial stocks while oil and gas stocks rose.
Among the top losers, transport operator Comfortdelgro Corp Ltd shed 1.92 per cent, while rig builder Keppel Corp gained 4.2 per cent.
Vietnam was marginally lower with financials and consumer cyclicals among the major losers.
Markets in Indonesia, Malaysia and Thailand were closed for a holiday. — Reuters