Southeast Asian stock markets were subdued on Friday, with the SET completing its worst weekly loss of the year, as investors assessed the likely fallout of US-China trade tensions on corporate results.
Sentiment in the region took a hit after German carmaker Daimler late on Wednesday cut its 2018 profit forecast, taking investors by surprise.
"Markets might have been underestimating the potential impact of global trade tensions", said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.
The Stock Exchange of Thailand index gained only 0.54 points to close at 1,634.98, in trade worth 50 billion baht. For the week it was down 4.1%.
In Kuala Lumpur, lenders gained after Malaysia's newly appointed central bank governor, Nor Shamsiah Mohd Yunus, said she would focus on financial stability.
The country's benchmark index snapped nine sessions of decline and ended marginally higher, with oil stocks contributing to the gains ahead of an Opec meeting. But the index shed 3.8% for the week, its biggest drop since Aug 2015.
"I think today’s market movement is driven by the Opec development. Given the fragile market sentiment, any positive development should act as a temporary relief for markets," said Taye Shim, head of research at Jakarta-based Mirae Asset Sekuritas.
Opec moved closer towards boosting oil output as Saudi Arabia and non-Opec Russia said a production increase of about 1 million barrels per day had become a near-consensus proposal, after major consumers warned of a supply shortage.
"We would remain cautious on the sustainability of the rebound," Shim added.
Philippine shares fell for a seventh straight session and were down 6.2% for the week, their biggest weekly fall in five years.
Bank of the Philippine Islands and Aboitiz Equity Ventures Inc fell nearly 3% each.
Indonesian shares extended losses to a fourth session ahead of May trade data expected on Monday and were down nearly 3% on week, their first weekly drop in four.
Vietnam shares climbed 1.4% as Vietnam Dairy Products JSC jumped 4.7% and Joint Stock Commercial Bank for Foreign Trade of Viet Nam climbed 3%.
