SINGAPORE: Most Southeast Asian stock markets ended lower on Wednesday, with Malaysia closing at its lowest in eight months, as a slide in global equities and oil prices spurred risk aversion.
Crude oil prices fell by 1 percent after the International Energy Agency cut its oil demand growth forecast for the year and next, implying that oil consumption may not breach 100 million barrels per day next year, while supplies are likely to exceed that level.
"Sliding equities on both sides of the Atlantic suggest that risk appetite continues to dissipate led by the buckle in oil prices," Mizuho Bank said in a research note.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6 percent.
In Southeast Asia, Malaysian shares declined 0.6 percent to their lowest close since mid-March, dragged by financials. Malayan Banking was the biggest drag with a fall of 1.4 percent.
Singapore shares fell 0.9 percent, weighed down by declines in financials and industrials.
Jardine Matheson Holdings Ltd closed 2.8 percent lower, while Oversea-Chinese Banking Corp Ltd fell 1.2 percent.
Philippine shares declined 1.3 percent with industrials leading the fall.
JG Summit Holdings dropped 4 percent to its lowest close since Sept. 13, while SM Investments Corp declined 1.1 percent.
"It's normal at this time of the year to see this movement as the (Philippine) markets start to consolidate," said Joseph Roxas, an analyst with Manila-based Eagle Equities.
Indonesian shares fell 0.3 percent with consumer discretionary stocks accounting for most of the decline.
Holdings company Astra International Tbk dropped 1.5 percent, while Bank Negara Indonesia (Persero) Tbk declined 2.5 percent.
Earlier in the day, Indonesia posted a trade surplus for a third straight month in October, although the surplus shrunk from that of September.
The index of the 45 most liquid stocks in Indonesia fell 0.2 percent.
Thai stocks ended 0.7 percent lower, with energy stocks leading the fall. Oil and gas heavyweight PTT Group Pcl was the biggest drag with a decline of 1.4 percent.
Vietnam shares rose for a ninth straight session, closing at their highest since January 2008.
Food processor Vietnam Dairy Products Joint Stock Co closed 1 percent higher, and was the biggest boost.
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