Southeast Asian stocks retreat

Most Southeast Asian stock markets slid lower on Friday, led by losses in big caps and financials, as investors remained wary about global uncertainty and US President Barack Obama's speech on a jobs package failed to revive sentiment. Late selling kicked in, pushing share markets into negative terrain. The region was treading water in early trading hours as global sentiment stalled after Western central banks failed to offer any fresh stimulus plans.
Singapore's Straits Times Index finished down 1.1 percent in a choppy session that sent the index to a 1-week high at one point. Philippine stocks, Indonesia and Malaysia posted limited losses. Thai stocks slid 0.9 percent. Bucking the trend, Vietnam climbed 1.47 percent.
"There are several global uncertainties enough for investors to cut their equities positions. At this point, the region is looking to new indicators from G7 meeting later on Friday," said Capital Nomura Securities strategist Chai Chirasevenupraphund. World stocks fell on Friday, keeping safe-haven government debt well-bid after US Federal Reserve Chairman Ben Bernanke gave no steer on new stimulus measures and as a $447 billion US jobs package failed to lure investors back into equities.
Finance ministers and central bankers from the Group of Seven economic powers meet in Marseilles, France on Friday with global slowdown and debt crises pressuring them to find new solutions, and currency intervention back on the table. Central banks of Indonesia, the Philippines and Malaysia held interest rates steady on Thursday, pausing in the fight against inflation while they assess how much their economies may suffer from a slowdown in US and European growth.
Among losers on the day, Singapore's top lender DBS Group Holdings dropped 1.9 percent, Thai top energy firm PTT fell 1.5 percent, Indonesia's biggest listed firm Astra International was down 1 percent. For the week, Indonesia racked up 4.1 percent gain, Southeast Asia's second best, partly playing a catch-up with the region after its market holidays last week. Vietnam posted a 5.7 percent rise for the week, the region's best performer.
Others were down slightly to flat on the week. Among weak spots, shares in Thai drinks company Serm Suk plunged 7.3 percent to 57.25 baht after Singapore-listed Thai Beverage announced a take-over bid for Serm Suk at a lower-than-market price of 58 baht. Thai Beverage dropped 3.7 percent on the day.