CORRECTED-SE Asia Stocks-Most fall on Fed rate hike chances; Indonesia down 2 pct

Last Updated: Thu, Nov 24, 2016 16:40 hrs

(Corrects headline to say Indonesia, not Philippines, down 2 pct) By Sindhu Chandrasekaran Nov 24 (Reuters) - Most Southeast Asian stock markets fell on Thursday as upbeat U.S. economic data raised the probability of a rate hike in December. Indonesian shares led the fall with a drop of 2 percent as the rupiah weakened to a near six-month low on foreign investor selling. "For every 1 percent depreciation in the rupiah, the market ETF growth will come down by about 0.9 percent," said Harry Su, an analyst with Bahana Securities in Indonesia, adding: "So, a stronger dollar is definitely bad for the market." "We expect the index (Jakarta Composite Index) to be potentially under pressure amid lack of supporting catalysts and pressure on the rupiah," Samuel Sekuritas said in a note. The JCI snapped two sessions of gains, dragged down by financials with index heavyweight PT Bank Mandiri (Persero) Tbk shedding 7.3 percent. Most Asian stock markets also fell on prospects of higher U.S. interest rates, while the dollar's bull run continued with U.S. bond yields propelled to multi-year highs. New orders for U.S. manufactured capital goods rebounded in October, the latest indication of an acceleration in economic growth early in the fourth quarter. Consumer sentiment also jumped in November in the wake of Donald Trump's election as the U.S. president. Minutes from the Fed's Nov.1-2 meeting, released on Wednesday, showed policymakers were confident that a strengthening economy was enough to warrant a rate hike soon. The Fed meeting shows a 100 percent chance of a rate hike next month, said Joseph Roxas, an analyst at Manila-based Eagle Equities. The rate increase and a better economy are starting to bring money back to the U.S. market and that money is probably coming from emerging markets such as the Philippines and the rest of Asia, he said. Vietnam snapped three sessions of gains, with industrials leading the losses, while Malaysia closed marginally lower after rising for three sessions. Bucking the trend, Singapore and Philippines recouped early losses to end marginally higher. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS: Change on day Market Current previous Pct Move close Singapore 2843.72 2839.69 0.14 Bangkok 1490.11 1496.36 -0.42 Manila 6873.31 6836.64 0.54 Jakarta 5107.623 5211.996 -2.00 Kuala Lumpur 1624.21 1630.38 -0.38 Ho Chi Minh 678.18 683.16 -0.73 Change on year Market Current End 2015 Pct Move Singapore 2843.72 2882.73 -1.35 Bangkok 1490.11 1288.02 15.69 Manila 6873.31 6952.08 -1.13 Jakarta 5107.623 4593.008 11.20 Kuala Lumpur 1624.21 1692.51 -4.04 Ho Chi Minh 678.18 579.03 17.12 (Reporting by Sindhu Chandrasekaran; Editing by Subhranshu Sahu)

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