SE Asia stocks tumble about 2% on U.S. crude price crash

REUTERS - Southeast Asian stock markets were pummelled yesterday, after a historic plunge in U.S. crude futures to below zero highlighted the damage wreaked by the coronavirus pandemic.

    Global markets fell, with the S&P 500 ending 1.79 percent lower and the Dow Jones Industrial Average closing down 2.4 percent overnight. Broader Asian markets were also trading lower.

“The impact of negative oil means different things for different Asian economies - but if you have to generalise, it isn’t great news,” Robert Carnell, regional head of research, Asia-Pacific at ING, wrote in a note.

Such a big negative deviation from the optimal price of oil will likely weigh heavily on demand for Asia’s exports, he added.

Most regional benchmark indexes tumbled more than 2 percent, with Philippines falling as much as 2.7 percent.
Consumer and industrial sectors led the declines. Aboitiz Equity Ventures fell as much as 2.9 percent, while conglomerate Alliance Global Group dropped 6 percent, hitting its lowest level since April 8. 

Malaysian stocks were down as much as 2 percent, set for their worst day since April 1.

Press Metal Aluminium weakened as much as 5.8 percent to a one-week low, while CIMB Group tumbled 4.5 percent.    

The Indonesian and Thai indexes both fell nearly 2 percent. Tourindo Guide Indonesia dropped to a five-week low, while Surapon Foods touched its lowest in near two weeks.

    Singapore stocks shed as much as 1.6 percent to hit their lowest level since April 13.  Sembcorp Industries declined as much as 4.4 percent to its lowest since April 7, while Wilmar International lost 3.5 percent to hit its lowest since April 6.