Canadian Prime Minister Justin Trudeau prepares to beat a gong at Ho Chi Minh City Stock Exchange on Friday. The Vietnamese index jumped more than 1% on Monday. (Reuters photo)
Vietnam shares closed at their highest in nearly a decade on Monday, while other Southeast Asian stock markets gave up early gains to close lower on uncertainty over a US tax reform deal.
World stock markets moved further away from recent record highs as US Senate Republicans unveiled a new tax plan that differs from the House of representatives’ version and there are few signs of a compromise.
“Digesting tax reform banter is an unsavoury business as even the ambient noise is triggering unusual moves across asset classes,” Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, wrote in a note.
“Besides with Christmas just around the corner, investors will be more inclined to book year-end profits, adding to sell-off momentum.”
Vietnam shares extended gains into a seventh session and closed 1.3% higher. They have climbed more than 32% so far this year, making them the region’s best performer.
Food processor Vietnam Dairy Products Joint Stock Co was the biggest boost, rising 6.2% to a record closing high.
Philippine shares dropped 1.2%, dragged by industrial and real estate stocks.
SM Investments Corp ended 2.8% lower, while Ayala Land declined 3%.
The market fell on profit-booking in stocks which saw steep rises in the last few sessions, said Fio Dejesus of Manila-based RCBC Securities.
Singapore shares closed marginally lower with gains in industrials outweighed by losses in financials.
DBS Group Holdings Ltd was the biggest drag with a decline of 1.1%.
Southeast Asian stock markets