Most Southeast Asian markets fell on Friday on caution ahead of US payrolls data, with Indonesia hitting a nine-month closing low on worries of an economic slowdown even as foreign investors continued to cut down their equity holdings. US job growth likely accelerated in April. Resilience in the US economy could prompt the Fed to increase the pace of its rate hikes, potentially drawing capital away from regional markets.
Investors were also keeping a close watch on US-China trade talks. In Southeast Asia, the Jakarta index hit a near nine-month closing low. Bank Central Asia fell 1.2 percent and Bank Negara Indonesia dropped 3.2 percent. The index fell 2.1 percent over the week. An index of the country's 45 most liquid stocks was down 1.5 percent. Indonesia's GDP growth rate likely was a touch weaker in 2018's first three months than in the previous quarter, a Reuters poll showed. The country is due to release its annual GDP data on May 7.
Foreign investors net sold $60.4 million worth of Indonesian stocks on Friday, according to stock exchange data. "We suspect the murky economic outlook amid low inflationary pressures have triggered the selloff. Further, we remain concerned that Bank Indonesia may be too much behind the yield curve," said Taye Shim, head of research at Mirae Asset Sekuritas.
Malaysian shares closed 0.5 percent lower as financials weighed. CIMB Group Holdings fell 3.3 percent and Malayan Banking dropped 0.8 percent. The index fell more than 1 percent this week. Meanwhile, all eyes are on the outcome of general elections scheduled next week for fresh cues.
"Investors will be looking forward to policy continuity which will be crucial to ensuring economic stability," DBS Bank said in a note. Singapore shares closed at their lowest in over two weeks as financials declined. The index snapped five straight weekly gains and ended the week lower. "For Singapore, traders may be adopting a buy-on-dip strategy, while keeping positions light. Ultimately, it's a fight between corporate earnings and interest rates," said Liu Jinshu, director of research at NRA Capital in Singapore.
Philippine shares cut early losses and ended marginally higher buoyed by industrials. The index fell for its fifth straight week. Philippine consumer prices accelerated in April at their fastest pace in at least five years. Thai shares were down 0.6 percent for the day, but ended the week marginally higher.
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