* Vietnam marks worst day since March 30
* Malaysia’s worst session in over four weeks
Southeast Asia markets closed lower led
by Vietnam stocks on Tuesday, rattled by a historic crash in
U.S. oil prices that laid bare the disruption caused by the
coronavirus pandemic.
The plunge, which pressured global markets, was a result of
a storage squeeze which turned holders of U.S. crude contracts
expiring later on Tuesday to forced sellers. This amid a lack of
demand for oil as countries around the world observe lockdowns
to curb the spread of the coronavirus.
“The impact of negative oil means different things for
different Asian economies – but if you have to generalize, it
isn’t great news,” Robert Carnell, regional head of research,
Asia-Pacific at ING, wrote in a note.
Such a big negative deviation from the optimal price of oil
will likely weigh heavily on demand for Asia’s exports, he
added.
Adding to the risk-off sentiment, the World Health
Organization warned that any lifting of lockdowns must be
gradual, otherwise it would lead to a resurgence of infections.
The Southeast Asia region experienced broad losses with
Vietnam’s main index settling 3.5% down – its lowest
close since April 13 and worst day since March 30.
Vietcombank closed nearly 1% down after the
commercial lender posted a 11.2% fall in first quarter
profit.
The Philippines ended 2.5% lower, bogged down by
industrials and consumer stocks.
Alliance Global Group declined 6.7% at close, while
JG Summit tumbled 6.2%.
Malaysian stocks closed the session 2.2% down, its
worst day since March 23.
Petronas Chemicals Group finished 7.3% lower,
while Hartalega Holdings shed 5.5%.
Meanwhile, Singapore and Indonesia both
closed about 1.6% lower.
Singapore’s Sembcorp Industries slid 4.4%, while
Tourindo Guide Indonesia finished about 8% down.