Vietnam down over 3 percent as global stocks plunge on second straight day

Southeast Asian shares shed most of January’s gains and ended lower for a second straight session on Tuesday as an overnight plunge on Wall Street triggered a rout in equities worldwide.

Most markets, however, staged a partial recovery towards the end of the session after U.S. stock futures changed course to rise 1.3 percent during Asia trading hours, signaling a likelihood of recouping losses when Wall Street opens.

Asian shares ended lower, with the MSCI's broadest index of Asia-Pacific shares outside Japan sliding 3.5 percent.    

The market reaction is slightly exaggerated, said Taye Shim, head of research at Mirae Asset Sekuritas.

"We are looking at situations where prices seem to have picked up a bit fast. However, I do not believe we are in a bubble situation."

The correction is likely to continue for a while and presents a good opportunity for investors to collect attractive assets, added Shim.

Vietnam, which as of Friday’s close was the only Southeast Asian stock market with double-digit percentage gains this year, slumped 3.5 percent in the session, at a month’s low.

The decline is expected to last until a few weeks after Tet, the biggest festival in Vietnam which peaks on February 16, analysts said.

The Philippine main index closed 0.8 percent lower, after dropping as much as 2.7 percent earlier, as financials weighed.

Philippine annual inflation accelerated much faster than expected in January, data showed, increasing the chances of an interest rate hike this week.

Aboitiz Equity Ventures Inc, down over 4 percent, was the top loser. The Bank of the Philippine Islands slid 3.1 percent while Ayala Corp hit a two-month low.

Singapore shares dropped 2.2 percent to a one-month low, as financials fell.

Oversea-Chinese Banking Corp and United Overseas Bank Ltd marked their steepest drop in over 2-1/2 years while DBS Group Holdings dived as much as 4.3 percent.

Indonesian shares ended 1.7 percent lower after shedding as much as 2.5 percent.

"The Indonesian market is a little stronger, less impacted by the market retreat. But obviously, the strength in the fundamentals of the economy is putting up well," said Shim.

Thai and Malaysian shares gave away 1.2 percent and 2.2 percent, respectively.