BENGALURU, Nov 10 — Most Southeast Asian stock markets were subdued today as uncertainty around US tax reforms kept investors on the back foot after Senate Republicans unveiled a plan that differed from the House of Representatives.
US Republican Senators yesterday said they want to slash the corporate tax rate in 2019, later than the House’s proposed schedule of 2018, complicating a push for the biggest overhaul of US tax law since the 1980s.
MSCI’s index of Asia-Pacific shares outside Japan fell 0.1 per cent.
“Growing uncertainty about US tax reforms spooked markets yesterday and there seems to be no relief on the way from elevated market volatility in the Asian session today,” ING said in a note.
Singapore shares traded flat and were on track to end the week 1.4 per cent higher, after hovering around two-year highs for three straight sessions.
DBS Group Holdings in the financial sector, down 0.3 per cent, was the biggest loser on the index, after the nation’s lender ended a day earlier at its highest in nearly 18 years.
Philippine stocks inched lower, a day after the Philippine central bank maintained its benchmark interest rate at 3 per cent yesterday.
Inflation in the country remained manageable, despite continuing robust growth in the economy.
The central bank yesterday also left unchanged the interest rates on its overnight lending and deposit facilities and the reserve requirement ratios for banks.
The Indonesian index edged 0.2 per cent lower, on track for a third consecutive session of losses, dragged by stocks from the financial and energy sectors.
An index of the country’s 45 most liquid stocks was trading 0.3 per cent lower.
PT Bank Central Asia Tbk fell 0.6 per cent, while mining contractor PT United Tractors Tbk slipped 3.8 per cent.
Vietnam stocks hit a fresh near-decade high with real estate developers Vincom Retail Joint Stock Company gaining 6.9 per cent.
Thailand shares edged 0.1 per cent down in lean trading.
Electric wire manufacturer Charoong Thai Wire & Cable Public Company fell 2 per cent while materials dealer Indorama Ventures Public Company was up 3.1 per cent. — Reuters