Indonesia and most Southeast Asian stock markets fell on Monday (09/04), with Singapore posting its lowest close in nearly two months, as North Korea's latest nuclear test and reports from Seoul that Pyongyang was making preparations for another missile launch put investors on the back foot. (ID Photo/David Gita Roza)

Stocks Fall After N.Korea Nuclear Test

BY :NICOLE PINTO

SEPTEMBER 04, 2017

Indonesia and most Southeast Asian stock markets fell on Monday (09/04), with Singapore posting its lowest close in nearly two months, as North Korea's latest nuclear test and reports from Seoul that Pyongyang was making preparations for another missile launch put investors on the back foot.

South Korea said on Monday it was talking to the United States about deploying aircraft carriers and strategic bombers to the Korean peninsula after signs North Korea might launch more missiles in the wake of its sixth and largest nuclear test.

Indonesian shares fell 0.9 percent, extending declines in to a fifth session, with Bank Rakyat Indonesia closing 1.7 percent lower and Astra International shedding 1.6 percent.

Data from the country's statistics agency showed that annual inflation rate slowed slightly in August as food prices dropped on a monthly basis.

Headline consumer prices rose 3.82 percent in August from a year ago, against the expectation of 3.95 percent in a Reuters poll. The central bank targets a headline inflation rate at 3 percent to 5 percent this year.

Singapore shares closed 1.4 percent lower, snapping two consecutive sessions of gains, with financials and industrials leading the decline. Oversea-Chinese Banking fell 2.2 percent and Yangzijiang Shipbuilding Holdings slumped 6.7 percent. The city-state is due to release its August manufacturing PMI data later in the day.

Meanwhile, Philippine shares climbed 1 percent ahead of August inflation data, expected on Tuesday.

A Reuters poll found annual inflation likely quickened for a second straight month in August, but the chances of an interest rate hike by the central bank this year remain slim.

Stock markets in Malaysia and Vietnam were closed for holidays.

Reuters

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