UNDATED, May 19: Southeast Asian stocks traded lower on Thursday on broader weakness in Asia as minutes from the U.S. Federal Reserve’s April policy meeting rekindled the possibility of a rate hike in June. MSCI’s broadest index of Asia-Pacific shares outside Japan fell over 1 percent to its lowest since March 3 as the prospect of a second U.S. rate hike in six months raised concerns for emerging markets already grappling with a slowing China. Philippine stocks led the falls in Southeast Asia and were headed for their first loss in five sessions, shrugging off strong quarterly GDP growth data released earlier in the day. Financial stocks took a hit, with Bank of the Philippine Islands down 1.1 percent as of 0459 GMT, while Metropolitan Bank and Trust Co fell 2.3 percent. Notwithstanding the Fed-driven selloff, analysts said the Philippine market had the potential to outperform. “The Philippines is strategically a good medium-term opportunity. They are expensive but they are growing quickly,” said Sean Taylor, chief investment officer, Asia Pacific, Deutsche Asset Management. “The Philippines is Deutsche’s most convincing overweight position among frontier market holdings.” Singapore’s Straits Times index was headed for its second session of falls, while Indonesia hit a near three-month low, with Bank Negara Indonesia (Persero) Tbk PT and Ciputra Development Tbk PT shedding 1.1 percent and 0.8 percent, respectively. (AGENCIES)
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