* Morgan Stanley to reduce global equities exposure
* Thai stocks close flat, Singapore top loser
By Soumyajit Saha
July 8 (Reuters) - Southeast Asian stock markets fell on
Monday, with Singapore shedding 1%, as strong U.S. jobs data for
June tempered hopes of sharp rate cuts by the U.S. Federal
Reserve.
U.S. government employment in June grew the most in 10
months, as overall non-farm payrolls increased by 224,000 jobs.
In contrast, only 72,000 jobs were added in May. After the strong payrolls report, there are some concerns
that Fed Chair Jerome Powell may not be as aggressive as the
market had expected on rate cuts, said Stephen Innes, managing
partner at Vanguard Markets, in a note to clients.
Hopes of sharp rate cuts by the Fed in the face of stumbling
economic data, especially under the weight of multiple tariff
tiffs that the United States has been involved in, have helped
markets retain their sheen over the last few months.
Morgan Stanley's decision to reduce its global equities
exposure also soured investor mood.
"The market is too optimistic on 2019 earnings and is
underestimating the pressure from inventories, labour costs and
trade uncertainty," Morgan Stanley said in a research note.
Singapore stocks .STI fell the most in Southeast Asia,
weighed down by industrials and financials. The benchmark stock
index logged its biggest percentage drop in almost two months.
Conglomerate Jardine Matheson Holdings Ltd JARD.SI dropped
1.5%, while lender DBS Group Holdings Ltd DBSM.SI lost 1%.
Philippine shares .PSI ended 0.8% lower, with index
heavyweights SM Prime Holdings Inc SMPH.PS and SM Investments
Corp SM.PS shedding 1.2% and 2.3%.
Indonesian shares .JKSE lost 0.3%, dragged by consumer and
financial stocks.
Cigarette maker PT Hanjaya Mandala Sampoerna Tbk HMSP.JK
was down 2.8%, while lender Bank Central Asia Tbk PT BBCA.JK
ended 1.5% lower.
Thai shares .SETI closed flat after the central bank chief
expressed confidence in the economy. The economy's relative strength in comparison to peers in
the region has driven strong capital inflows so far this year.
Foreign investors have purchased a net $1.69 billion worth
of Thai equities so far this year.
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SOUTHEAST ASIAN STOCK MARKETS
Change on the day
Market Current Previous Pct Move
close
Singapore 3334.23 3366.81 -0.97
Bangkok 1731.03 1731.23 -0.01
Manila 8051.52 8117.94 -0.82
Jakarta 6351.827 6373.477 -0.34
Kuala Lumpur 1677.64 1682.53 -0.29
Ho Chi Minh 966.35 975.34 -0.92
Change so far in
2019
Market Current End 2018 Pct Move
Singapore 3334.23 3068.76 8.65
Bangkok 1731.03 1563.88 10.69
Manila 8051.52 7,466.02 7.84
Jakarta 6351.827 6,194.50 2.54
Kuala Lumpur 1677.64 1690.58 -0.77
Ho Chi Minh 966.35 892.54 8.27