Southeast Asia markets closed lower led by Vietnam stocks on Tuesday, rattled by a historic crash in US oil prices that laid bare the disruption caused by the coronavirus pandemic.
The plunge, which pressured global markets, was a result of a storage squeeze which turned holders of US crude contracts expiring later on Tuesday to forced sellers. This amid a lack of demand for oil as countries around the world observe lockdowns to curb the spread of the coronavirus.
"The impact of negative oil means different things for different Asian economies - but if you have to generalize, it isn't great news," Robert Carnell, regional head of research, Asia-Pacific at ING, wrote in a note.
Such a big negative deviation from the optimal price of oil will likely weigh heavily on demand for Asia's exports, he added.
The Southeast Asia region experienced broad losses with Vietnam's main index settling 3.5% down - its lowest close since April 13 and worst day since March 30.
Vietcombank closed nearly 1% down after the commercial lender posted a 11.2% fall in first quarter profit.
The Philippines ended 2.5% lower, bogged down by industrials and consumer stocks.
Alliance Global Group declined 6.7% at close, while JG Summit tumbled 6.2%.
Malaysian stocks closed the session 2.2% down, its worst day since March 23.
Petronas Chemicals Group finished 7.3% lower, while Hartalega Holdings shed 5.5%.
Meanwhile, Singapore and Indonesia both closed about 1.6% lower. Singapore's Sembcorp Industries slid 4.4%, while Tourindo Guide Indonesia finished about 8% down.
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