Most Southeast Asian stock markets fell on Monday, tracking broader Asia amid a sustained equity sell-off, while Vietnam shares extended their recovery into a second session. MSCI's broadest index of Asia-Pacific shares outside Japan fell about 1 percent after a Wall Street Journal report that US President Donald Trump planned to bar many Chinese companies from investing in US technology firms and block additional technology exports to China.
Safe-haven assets such as the Japanese yen and gold saw higher bids. The yen rose about 0.4 percent against the dollar. In Southeast Asia, Singapore shares fell 0.8 percent, extending their decline into a third session and hitting their lowest since October 4, 2017. Financials were the largest drags on the index, with lenders DBS Group and Oversea-Chinese Banking Corp shedding 0.9 percent and 1.3 percent respectively.
Singapore's headline inflation rate quickened more than expected in May from a year earlier, hinting that the island state may see increased inflationary pressure in the near future.
Philippine shares gave up early gains to close at their lowest in 1-1/2 years, and marked their eighth consecutive session of decline.
Industrials were the biggest drags on the index, with SM Investments Corp declining about 2.7 percent.
Vietnam shares ended about 0.8 percent higher, building on Friday's gains, as financial and real estate stocks led the charge. "It's a modest recovery... The market looked technically oversold on Friday, while valuations are far less expensive now. However, overall activity is well below peaks and sentiment remains fragile," said Fiachra MacCana, head of research at Ho Chi Minh Securities.
Indonesian shares rose about 0.6 percent, with consumer staples and financials leading the gains. Indonesia's trade deficit narrowed to $1.52 billion in May but was worse than expected, due to higher oil prices. The rupiah fell about 0.6 percent to the dollar following the news. An index of the country's 45 most liquid stocks ended 1.1 percent higher.
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