S’pore snaps 10-day losing streak, Indonesia hits over 2-month low

Reuters: Singapore shares rose on Monday, snapping a 10-session losing streak, helped by a rally in U.S. stocks late last week, while most other Southeast Asian markets suffered losses led by Indonesia, which fell to its lowest in over two months.

U.S. stocks bounced back on Friday from early losses to close higher as investors viewed the day’s jobs data as less disappointing than first thought. 

“Singapore stock market opened higher as positive sentiments spilled over from the positive U.S. close last Friday,” said KGI Fraser Securities analyst Hong Wei Wong.

However, investors may take the opportunity to sell into rallies due to the weak economic outlook ahead, he said.

Singapore’s Straits Times index closed up 1.3%. Oil rig firm Keppel Corp closed up 1%, while Sembcorp Marine rose 0.6%, after gaining as much as 2.6% earlier.

Indonesian shares closed down 1.5%, led by utilities, while Malaysia fell 1% as industrials lost ground.

The losses came on the heels of China’s April trade data, released on Sunday, which doused investor hopes of a sustainable economic recovery, with both exports and imports falling more than expected. 

“For Indonesia we expect a choppy session in the near horizon, with a downward bias, following a soft 1Q16 GDP print,” said KDB Daewoo Indonesia analyst Taye Shim.

“In terms of flow, we suspect that foreigners will keep their selling bias while locals are likely to remain sidelined given lack of positive catalyst.”    

The Philippine market remained closed for Presidential elections for which Rodrigo Duterte, mayor of the southern city of Davao, has emerged as the front runner. 

The Philippine index fell 2.3% last week.

“There are increasing jitters over the upcoming presidential elections as the economic policies of the current front runner - Rodrigo Duterte - remain unknown,” Maybank said in a note.

Yen tumbles after Tokyo warning

Reuters:  The yen tumbled against the U.S. dollar on Monday as Japan signalled it was ready to intervene in the currency market, while a drop in oil prices undercut stocks.

U.S. stock indexes were little changed, as the energy sector dragged. Europe’s broad stock index gained as data showed German industrial orders rose more than expected in March.

Most U.S. Treasury yields fell as investors lowered estimates that the Federal Reserve will raise interest rates in June, after a weaker-than-expected jobs report.

The Dow Jones industrial average was down 69.3 points, or 0.39%, at 17,671.33, the S&P 500 was losing 2.51 points, or 0.12%, at 2,054.63 and the Nasdaq Composite was adding 6.48 points, or 0.14%, at 4,742.63.

Europe’s broad FTSEurofirst 300 index gained 0.4%. Germany’s DAX climbed 1.1%.

MSCI’s world equity index slipped 0.2% after posting its worst weekly performance since mid-February last week.

The U.S. dollar gained 1.2% against the yen, after the Japanese currency last week hit a 1-1/2 year high against the greenback.

Japanese Finance Minister Taro Aso said Tokyo is ready to intervene if yen moves are volatile enough to hurt the country’s trade and economy.