Philippine shares slide on growth worries; Indonesia reverses early gains

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• Thai baht strengthens as gold prices rebound
• Indonesian shares touch record of 8,669.187 points
• Indian rupee weakens to an all-time low

Philippine shares led losses among Asian equity markets on Wednesday as growth concerns further eroded weak consumer and investor confidence, while Indonesia’s benchmark reversed course to edge lower.

Shares in Manila <.PSI> declined 1.5% after the central bank governor said on Monday the annual economic growth could fall short of expectations after the third-quarter reading fell sharply, missing market estimates.

Government authorities are investigating a massive scandal tied to infrastructure projects designed to tackle flooding. It had triggered mass protests, weighing on both the peso and local stocks.

“We see the corruption scandal in the Philippines leading to at least two more quarters of fiscal tightening and lower growth,” Nomura analysts wrote.

The Philippine stock index has shed more than 9% this year, although it has gained around 90 points in the last two weeks on expectations of a 25-basis-point U.S. Federal Reserve interest rate cut next week that boosted global risk sentiment.

Meanwhile, Indonesian shares <.JKSE> touched an all-time high of 8,669.187 in early trade before edging 0.2% lower.

“In my view, the new finance minister’s (Purbaya Yudhi Sadewa) growth initiatives are gaining traction, macro visibility is improving, and fiscal discipline remains intact,” said Mohit Mirpuri, a fund manager at SGMC Capital.

Indonesia has rolled out a 16.23 trillion rupiah ($976.06 million) stimulus package under Purbaya, who was appointed in early September. The package focused on providing food aid and infrastructure.

Elsewhere, Thailand shares <.SETI> were flat while Singapore shares <.STI> rose for a sixth consecutive session, climbing as much as 0.4% to a near three-week high.

Thailand, another regional laggard, has fallen nearly 9% this year, with analysts warning that persistent political risks and uncertainty beyond the March elections could delay the budget and weigh on growth.

Tech-heavy indices in Seoul <.KS11> and Taipei <.TWII> advanced 1% and 0.8%, respectively, following Wall Street gains as investors bet that U.S. President Donald Trump may soon nominate a Federal Reserve chair seen as supportive of lower interest rates.

The anticipated U.S. AI investment boom has major implications for Asian equities, with regional hardware suppliers at the core and the trend benefiting multiple segments of the AI/tech supply chain, said Chetan Seth, a financial analyst at Nomura.

The Thai baht <THB=TH> appreciated as much as 0.5% to a more than two-month high, as gold prices rebounded after falling more than 1% on Tuesday. [GOL/]

The Philippine peso <PHP=> slipped 0.5%, while the Indian rupee <INR=IN>fell past 90 per dollar.

HIGHLIGHTS:

** South Korea Q3 GDP +1.3% q/q, faster than earlier estimate

** Thai inflation posts eighth straight negative reading in November

** Thai business group sees GDP growth at 2% this year

($1 = 16,628.0000 rupiah)

—Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich and Harikrishnan Nair