Southeast Asia stocks: Philippines slumps over 2%; most others end lower

Philippine shares fell over 2% on Monday to their lowest since Oct. 9 as weakness in water utilities hit sentiment, while Thailand stocks were dragged lower by industrials.

Most other markets in the region fell as investors sought further clarity of the "phase one" deal between Washington and Beijing.

Last week, the Philippines' water regulator cancelled the extension of concession deals with the country's two largest utilities Manila Water Co Inc and Maynilad Water Services after pressure from President Rodrigo Duterte.

Metro Pacific Investments Corp on Monday clarified that the shortened concession term prevents its unit Maynilad Water Services from starting new projects.

The news about the water concession extension has weighed on water utility companies and dragged risk sentiment in Philippines, said Charlene Erieka Reyes, officer in-charge of trading and research at First Resources Management and Securities Corp.

Ayala Corp, the biggest shareholder in Manila Water Company, slumped to its lowest since January 2017.

Reyes also said investors were moving out of the Philippine market which is reflected in the high net foreign selling.

Meanwhile, most other markets in the region were cautious, with analysts terming the details of the interim deal to be not "very compelling".

The agreement announced last week suspended U.S. tariffs on a $160 billion list of Chinese imports that was scheduled to take effect on Sunday. Washington also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods.

Denting sentiment further, data showed China's new home prices grew at their weakest pace in nearly two years in November, while property investment also eased.

The Thai index shed over 1%, weighed by industrials and utility stocks.

The country's central bank is set to meet on Wednesday where it will likely downgrade the country's growth outlook again while holding benchmark interest rate, a Reuters poll showed.

Shares of Gulf Energy Development PCL and Airports of Thailand PCL dropped 5% and 1.7%, respectively.

Indonesian stocks pared some early gains after the country reported a trade deficit in November that was its biggest in seven months.

(Reporting by Shruti Sonal in Bengaluru; editing by Uttaresh.V)

By Shruti Sonal