Stocks in Southeast Asia as strong data on US employment soften hopes for rate cuts

                * Morgan Stanley will reduce its exposure to global equities
* Thai stocks close flat

By Soumyajit Saha
July 8 (Reuters) - The stock markets of Southeast Asia have fallen
Monday, with a loss of 1% for Singapore, while data on US jobs for
June has tempered hopes of strong rate cuts from the US federal government
Reserve.
US government employment in June posted the strongest growth in 10
months, while all non-farm employment increased by 224,000 jobs.
In contrast, only 72,000 jobs were added in May.
After the payroll report, there are some concerns
Jerome Powell, Fed Chairman, may not be as aggressive as the
expected rate cuts, said Stephen Innes, Director
partner at Vanguard Markets, in a note to customers.
Hopes of strong rate cuts by the Fed in the face of difficulties
economic data, especially under the weight of multiple tariffs
tiffs that the United States has been involved in, have helped
the markets have kept their luster in recent months.
Morgan Stanley's decision to reduce global equities
exposure also lowered the mood of investors.
"The market is too optimistic about the results of 2019 and is
underestimate the pressure of stocks, labor costs and
commercial uncertainty, "said Morgan Stanley in a research note.
Singapore shares fell the most in Southeast Asia,
burdened by industries and financial services. The reference stock
The index recorded its largest percentage decline in almost two months.
Jardine Matheson Holdings Ltd conglomerate dropped
1.5%, while the lender DBS Group Holdings Ltd lost 1%.
Philippine equities ended down 0.8%, with
SM Prime Holdings Inc and SM Investments
Corp rejecting 1.2% and 2.3%.
Indonesian equities lost 0.3% driven by consumers and
financial stocks.
PT cigarette manufacturer Hanjaya Mandala Sampoerna Tbk
down 2.8% while lender Bank Central Asia Tbk PT
finished 1.5% lower.
Thai shares closed flat after central bank chief
expressed confidence in the economy.
The relative strength of the economy compared to peers
the region has generated strong inflows of capital so far this year.
Foreign investors bought a net worth of $ 1.69 billion
Thai shares so far this year.

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SOUTH-EAST ASIAN ACTION MARKETS

Change the day
Current market previous pct movement
To close
Singapore 3334.23 3366.81 -0.97
Bangkok 1731.03 1731.23 -0.01
Manila 8051.52 8117.94 -0.82
Jakarta 6351.827 6373.477 -0.34
Kuala Lumpur 1677.64 1682.53 -0.29
Ho Chi Minh 966.35 975.34 -0.92
Change up to now in
2019
Current market end 2018 Pct Move
Singapore 3334.23 3068.76 8.65
Bangkok 1731.03 1563.88 10.69
Manila 8051.52 7,466.02 7.84
Jakarta 6351.827 6,194.50 2.54
Kuala Lumpur 1677.64 1690.58 -0.77
Ho Chi Minh 966.35 892.54 8.27


(Report of Soumyajit Saha, additional report of Gaurav
Dogra; Edited by Subhranshu Sahu)