Vietnamese stocks fall after 8 sessions of gain, Thailand extends rise

By Reuters   June 12, 2018 | 12:12 am PT
Vietnamese stocks fall after 8 sessions of gain, Thailand extends rise
A woman rides a bicycle past Hanoi Stock Exchange in Hanoi, Vietnam. Photo by Reuters/Nguyen Thanh Cao
Asian markets were choppy as the historic U.S.-N.Korea raised hopes for denuclearization.

Vietnam shares fell on Tuesday after eight consecutive sessions of gains, while Thai shares rose for a second straight day on the back of energy and consumer staples stocks.

Broader Asian markets were choppy as the historic U.S.-N.Korea summit started in Singapore amid hopes that it could pave the way to ending a nuclear stand-off on the Korean peninsula.

The fixation with the summit is as much about whether the two sides will strike a deal as it is about what would comprise a deal, Mizuho Bank analysts said in a note.

"It appears that the term 'de-nuclearization' must be thrown into the mix somewhere, but strictly with wiggle room for both parties... and in return, the United States may offer some conditional reprieve on sanctions with sunset clauses," Mizuho Bank said.

Vietnam shares fell as much as 3.3 percent, snapping eight sessions on gains, with Vietnam Technological and Commercial Joint Stock Bank (Techcombank) down 4.5 percent and Vingroup JSC 3.5 percent lower.

Malaysian shares were down for a third straight session, declining as much as 0.4 percent. Malayan Banking Bhd declined up to 1.3 percent and was headed for a third straight session of fall. 

CIMB Group extended its fall into a third session with a drop of up to 1.8 percent. 

An analyst said there is no immediate catalyst for the local market to see an upward trend as investors are still evaluating the policies of the new government. 

Investors are taking profit on whatever strengths they can find, said the analyst, adding that: "If the (U.S.-N.Korea summit) goes well, it could lead to slight optimism in the local market." 

Thai shares rose as much as 0.7 percent as convenience stores operator CP All PCL gained 2.2 percent, while PTT PCL rose nearly 2 percent and PTT Exploration and Production PCL added 1.9 percent as oil prices edged higher.

Indonesian financial markets are closed until June 19 for Eid Al-Fitr, while the Philippines was closed on Tuesday for Independence Day.

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