SINGAPORE: Most Southeast Asian stock markets fell on Tuesday, in line with Asian peers, as investors worried that a higher-than-expected US inflation print would hasten the Federal Reserve into pressing ahead with a rate increase as early as next week.
Consumer price inflation data for February is due later in the global day, and follows low wage growth numbers last week, which eased concerns about inflation and over a faster pace of rate hikes by the central bank.
Higher US rates reduce the attractiveness of riskier asset classes like equities in growth markets such as Southeast Asia, due to the improved yields for safer, US assets.
"It is people being risk-averse ahead of anticipated results (economic data), so not only is it the US inflation report but also China's production numbers as well as their retail activity," said Fio Dejesus, equity research analyst at RCBC Securities in Manila.
Chinese industrial output and retail sales data for February are due on Wednesday.
In Southeast Asia, Indonesia's benchmark fell 0.7 percent on broad-based losses. Telekomunikasi Indonesia lost as much as 1.9 percent.
An index of the country's 45 most liquid stocks fell as much as 1 percent.
Malaysian shares inched lower, with consumer discretionary and telecom stocks dragging down the index. Genting Malaysia Bhd, down 1.7 percent, contributed the most to index losses.
The Philippine index fell 0.4 percent, hurt by weakness in financials and real estate stocks. BDO Unibank Inc slid 2.5 percent.
Thai shares moved into negative territory after ending higher for the first session in nine on Monday. PTT Pcl weighed the most on the benchmark, slipping 0.4 percent.
The Singapore index rose slightly, helped by gains in Capitaland Mall Trust and DBS Group Holdings Ltd , which were up 0.5 percent and 0.9 percent, respectively.
Asia-shares outside Japan, which surged 1.5 percent on Monday, were nearly unchanged.
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