Indonesian shares hit a near 4-week closing low on Wednesday, falling for a seventh straight session as investors stayed on the sidelines due to a lack of positive triggers, while Thai shares lost ground for a third day. The Jakarta Composite Index closed nearly 1 percent lower, dragged down by consumer staples and financial stocks.
Shares of tobacco companies Hanjaya Mandala Sampoerna Tbk PT and Gudang Garam Tbk PT were down 4.8 percent and 1.6 percent, respectively. "I think lack of positive catalysts inside and out is what is keeping the investors sidelined," said Taye Shim, head of research at Daewoo Securities Indonesia. "They are still anticipating that the Fed's (US Federal Reserve) rate hike will trigger higher value of the US dollar, going forward."
The dollar eased back on Wednesday from the 14-year high reached the previous day, taking a breather in a run that has seen it chalk up its entire gains for the year since the November 8 US presidential election. Thai shares hit a near 3-week closing low, dragged down by industrials and consumer stocks. Thailand's central bank kept its benchmark interest rate unchanged as widely expected and maintained its growth estimate for this year and 2017.
Policymakers are counting on government spending to keep Thailand's economic engines humming as it confronts rising global trade protectionism and emerging market capital outflows in the wake of rising US interest rates. Malyasian stocks were down 0.3 percent, dragged lower by telecom and financial shares. Singapore shares closed at their lowest in three weeks as financial and consumer stocks lost ground. Bucking the trend, the Philippine index closed 0.4 percent higher, snapping a four-day losing streak, while Vietnam was up 0.6 percent.
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