Southeast Asian stocks largely down

Most Southeast Asian stock markets ended lower on Tuesday, with Vietnam shares snapping eight sessions of gains to close weaker, as investors took a cautious stance ahead of an expected interest rate hike by the US Federal Reserve. The US Federal Reserve is virtually guaranteed to announce a hike in interest rates on Wednesday. In what could be the most consequential rewrite of its policy statement in two-and-a-half years, the Fed may signal how close it is to stopping its rate hike cycle.
Indonesian markets were closed for Eidul-Fitr, while the Philippines markets were closed for Independence Day on Tuesday. Southeast Asian markets reacted calmly to the United States-North Korea summit, where the leaders of both countries pledged to work toward complete denuclearisation of the Korean peninsula, and Washington committed to providing security guarantees to the Asian nation. The historic summit did not impact prices on the markets.
Singapore shares shed previous session's gains to end lower, pulled down by financial stocks. Data released earlier in the day showed Singapore's retail sales rose 0.4 percent from a year earlier, but fell 0.2 percent from the previous month.
"Investors continue to reel from losses due to Hyflux's debt restructuring," said Liu Jinshu, director of research, NRA Capital, adding, "There are also talks that banks' second-quarter results may be affected by Hyflux's debt restructuring." "Investors are likely to look for cues from the Federal Reserve meeting this week. If they appear dovish ... the market might just get dragged higher. Otherwise, we would probably have to wait until the start of the second-quarter earnings season in late July for more market participation," he added.
Vietnam shares snapped a winning streak to close 1.8 percent lower on broad-based losses. Oil and gas refiner Petrovietnam Gas Joint Stock Corp, which ended 5.1 percent down, was the biggest drag on the index. Malaysian shares extended declines to a third session, weighed down by Malaysia's national electricity utility Tenaga Nasional. Bucking the trend, Thai shares posted gains for a second session, underpinned by energy and consumer staple stocks.