Most fall tracking broader Asia after Wall Street slips

JAKARTA: Most southeast Asian stock markets fell on Friday, tracking broader Asian markets, as U.S. shares fell sharply overnight after disappointing labor market data clashed with the possibility of a more hawkish Federal Reserve.

The softer data comes on the heels of Wednesday's release of the minutes from the Fed's June meeting, which showed policymakers were increasingly split on the inflation outlook and how it might affect the pace of rate increases.

"Markets are mixed, bit more on the negative side. I think for now we are still in the risk-off mood. We do not really want any surprises from the U.S. Fed and this (market movement) is

because of the Fed," said Mikey Macainag, an analyst with Sunsecurities Inc.

Meanwhile, developed market bonds were sold off afresh on Thursday on bets the European Central Bank is inching closer towards unwinding its massive monetary stimulus.

The prospect of the ECB turning off the flow of easy money has been a dominant global market theme since President Mario Draghi's hawkish comments last week, pushing bond yields higher and hurting equities.

Malaysia, one of the biggest oil and natural gas exporters in Asia, led losses in the region as sentiment was hit by a fall in oil prices early on Friday.

Energy major IOI Corporation Bhd fell as much as 3.3 percent, posting its biggest intra-day percentage fall since Nov. 2016.

Singapore edged down 0.3 percent, dragged by declines in financial shares.

DBS Group Holdings and Oversea-Chinese Banking Corp fell 0.6 percent each.

Thai shares dropped 0.1 percent hurt by industrial stocks like Airports of Thailand, down as much as 1.5 percent.