* Philippines drops over 1% to 3-week lows
* Malaysia sees biggest intraday loss in over two months
* Thai shares little changed ahead of June trade data
By Anushka Trivedi
July 31 (Reuters) - Most Southeast Asian stock markets edged
lower on Wednesday as U.S. President Donald Trump's fresh
warning to China amid ongoing trade talks weighed on the market,
with Philippines shedding over 1% to three-week lows.
As a fresh round of trade talks between the world's top two
economies started in Shanghai on Tuesday, Trump blamed Beijing
for not upholding its promise to buy more U.S. agricultural
products and warned it against waiting out his current
presidential term to strike a trade deal. Trump's trade threat weighs on risk-taking while investors
are also likely to tread a cautious path ahead of the U.S.
Federal Reserve's policy decision, ING said in a note.
Later in the day, the Fed is widely expected to slash rates
by 25 basis points for the first time since the financial crisis
more than a decade ago. Hopes of a rate cut have supported a
bull run in risk assets worldwide recently.
Meanwhile, sentiment was dented further as China's factory
activity declined for a third straight month in July,
underlining growing strains on Southeast Asia's biggest trade
partner as the Sino-U.S. trade war hits business profits,
confidence and investment. Philippine stocks .PSI dropped 1.2% to three-week lows,
making them the top losers in Southeast Asia.
Electricity retailer Aboitiz Power Corp AP.PS was among
the top drags, with a fall of 2.2% after it reported a slip in
second-quarter net income. In other news, fast-food chain Jollibee Foods Corp JFC.PS
said it would enter the Indonesian market with its newly
acquired U.S. chain Coffee Bean & Tea Leaf. Malaysian shares .KLSE fell 0.6%, their biggest intraday
loss in over two months.
Financials tugged the benchmark lower, with Public Bank Bhd
PUBM.KL and Hong Leong Financial Group Bhd HLCB.KL shedding
over 2% each.
Thai shares .SETI were little changed ahead of June trade
data. Exports are under pressure as the country continues to
suffer from a downturn in China's economy and the U.S.-China
trade tiff, with UOB Global Economics and Markets Research
stating in a note last week that it does not see any export
growth this year for Thailand.
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SOUTHEAST ASIAN STOCK MARKETS AS AT 0405 GMT
Market Current Previous close Pct Move
Singapore 3346.73 3350.54 -0.11
Bangkok 1708.46 1706.49 0.12
Manila 8059.23 8150.46 -1.12
Jakarta 6359.35 6376.996 -0.28
Kuala Lumpur 1634.07 1642.69 -0.52
Ho Chi Minh 987.42 986.02 0.14
Change so far in 2019
Market Current End 2018 Pct Move
Singapore 3346.73 3068.76 9.06
Bangkok 1708.46 1563.88 9.24
Manila 8059.23 7,466.02 7.95
Jakarta 6359.35 6,194.50 2.66
Kuala Lumpur 1634.07 1690.58 -3.34
Ho Chi Minh 987.42 892.54 10.63