Southeast Asian equity markets plunged as investors fled riskier assets on concerns that a trade war will hurt the region’s economies.
Most regional stock benchmarks tumbled, with the MSCI Asean Index dropping as much as 3.2%. Indonesia’s gauge triggered a halt and sank as much as 9.7%, as trading resumed for the first time since March 27.
Southeast Asia’s export-dependent economies saw new tariffs imposed last week by US President Donald Trump that exceeded market expectations. The regional gauge has lost 11% since the levies were rolled out. Thailand and Indonesia were already among the world’s worst performing equity markets.
Most Southeast Asian currencies are weaker against the dollar since Trump’s tariff announcement on April 2, as economies in the region are highly susceptible to US tariffs. America is among the top two main trading partners for Singapore, Vietnam, Thailand and the Philippines, according to International Monetary Fund data published in 2023.
“Many markets have already traded down for a few days,” said Jerry Goh, investment director of Asian equities at abrdn. “No one is spared.”
International investors fleeing for safer markets withdrew about $6.5 billion from the region’s equities in the first quarter of the year.
