The Stock Exchange of Thailand reached its lowest close in three weeks on Wednesday, while most Southeast Asian stock markets ended the day lower in line with broader Asia, after oil prices sky-rocketed to an over three-year high.
The oil prices jumped as President Donald Trump pulled the United States out of the Iran nuclear deal, while Indonesian shares surged.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped as renewed US sanctions on Tehran could be disruptive for many companies that have deals with Iran.
Oil prices rose as much as 2.8%, likely curbing Iran's crude exports in an already tight market.
"Asian markets are quite susceptible to foreign pressure because they are heavily dependent on oil," said Manny Cruz, an analyst at the Manila-based Asiasec Equities Inc.
Inflation is a concern for most Asian economies and it may impair growth in the near term if oil prices stay above US$70 per barrel, he said. "That will continue to weaken sentiment in equities."
An International Monetary Fund (IMF) official said the IMF was not too worried about recent selling pressure on assets in Indonesia and the Philippines as it was not triggered by domestic factors.
The SET main index slipped 3.35 points or 0.19% to close at 1,756.90, its lowest close in three weeks, in trade worth 59.5 billio baht. Gains in energy stocks were curbed by losses in telecom.
PTT Plc edged 1.8% higher, while telecom services provider Advanced Info Services Plc shed 4.4%.
Indonesian shares erased early losses to end 2.3% higher, their biggest daily gain in a year. PT Unilever Indonesia rose 5.1%, while PT Bank Central Asia ended 4% higher.
An index of Indonesia's 45 most liquid stocks rose 3.7%.
Among markets that fell, Philippines ended 0.3% lower, with financials leading falls. Security Bank Corp lost 4%.
The Philippine Statistics Authority released preliminary data earlier in the day, indicating that trade deficit for March had narrowed.
Singapore closed marginally higher. Keppel Corp, a holding company engaged in offshore oil rigging, ended 2.6% higher.
Malaysia was closed for general elections.
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Southeast Asian stock markets |
|
||
|
|
Current |
Previous |
% change |
|
Thailand |
1,756.90 |
1,760.25 |
-0.19 |
|
Indonesia |
5,907.93 |
5,774.71 |
+2.31 |
|
Malaysia |
|
|
Closed for elections |
|
Philippines |
7,555.27 |
7,577.57 |
-0.29 |
|
Singapore |
3,548.54 |
3,543.17 |
+0.15 |
|
Vietnam |
1,056.97 |
1,060.45 |
-0.33 |
