Most Southeast Asian markets gave up early gains to trade lower on Tuesday, as fears of a slow economic recovery from the coronavirus pandemic and a tumble in oil prices weighed on sentiment.
Oil prices extended the previous session’s slide on Tuesday, on worries about limited storage capacity for crude worldwide and expectations that demand for fuel may only recover slowly.
“The crude oil market is still in a state of abyss. The mood remains highly bearish and uncertain, with no clear indication on when demand may return,” analysts at OCBC said in a note.
Energy stocks dragged down Vietnam’s benchmark index as much as 0.7%. Petrovietnam Gas Joint Stock Group and Vietnam National Petroleum Group fell about 3% each.
Leading losses in the region, Singapore’s Straits Times index fell as much as 0.7%. Conglomerate Jardine Matheson Holdings slipped as much as 1.5% to hit a five-week, while Yangzijiang Shipbuilding tumbled 3.5%.
Markets were optimistic earlier in the session as several parts of the United States and various other hard-hit economies, such as Italy, were set to open in efforts to revive their economies.
The Philippine benchmark, rose as much as 1.9%, on track for its best day since April 17, lifted by consumer stocks. Conglomerate SM Investments Corp gained more than 4% and was set to post its best day since April 17, while food and beverage company Universal Robina advanced as much as 3.7%.
Another bright spot was Indonesian stocks, up 0.4%, which was helped by gains in industrial companies. Sea transportation services provider Transcoal Pacific rose as much as 1.6%, while toll road service provider Jasa marga (Persero) jumped 3.9%.
Thailand and Malaysia fell marginally. – Reuters