Most Southeast Asian stock markets fell on Wednesday, with Indonesia shedding 2 percent in its sharpest drop in nearly four months, tracking weakness in broader Asia. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.6 percent as fears resurfaced that US President Donald Trump will proceed with protectionist tariffs and risk a trade war after a strong White House advocate for free trade resigned.
Indonesian shares declined for a fourth straight session with financial and consumer stocks leading the drop. Astra International fell 2.8 percent, while clove cigarette maker Hanjaya Mandala Sampoerna dropped 4.3 percent as its annual profit declined. Bank Central Asia finished 0.8 percent lower ahead of its full-year results on Thursday.
An index of the nation's 45 most liquid stocks dropped 2.3 percent, its lowest close in over two months. Singapore shares dropped over 1 percent with the city-state's top three lenders among the biggest drags. Malaysian stocks fell for a third session in four with aluminium trader Press Metal Aluminium and financial services provider CIMB Group Holdings being the biggest drags.
Meanwhile, the central bank left its key interest rate unchanged as expected, after hiking it for the first time in over three years in January, as easing inflationary pressures and solid growth gave it room to hold off further tightening for now. An ING analyst expects the next rate hike in the third quarter of 2018.
Thai shares extended falls into a sixth session, the longest losing streak since May 2017, with energy and material stocks being the biggest drags. PTT dropped 2.2 percent, while PTT Global Chemical declined 4.4 percent Philippine shares snapped a five-session losing streak and closed 0.5 percent higher on some buying right before the close.
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