(Sept 1): Equities in Southeast Asia fell on Tuesday, with Malaysia and Singapore leading losses, as oil prices climbed above US$90 a barrel and a global bond sell-off fuelled by concerns about inflation and tighter monetary policy weighed on risk assets across emerging markets.

The MSCI gauge of Asean stocks fell 0.3% to a two-week low, pressured by a 0.8% fall in Singapore's FTSE Straits Times index and Malaysia's benchmark stock index.

A broader gauge of emerging Asia equities rose 0.5%, supported by Taiwan's stocks, which climbed 1.8% after hitting a near two-month high earlier in the session.

South Korea's Kospi index was up 0.2% in afternoon trade in Singapore.

Global bond yields hit fresh highs after renewed fighting in the Middle East lifted oil prices and reignited inflation concerns.

The 10-year US Treasury yield rose to its highest since early 2025, while Japan's benchmark 10-year yield touched 3% for the first time in a generation.

Global macro jitters, from the US-Iran conflict and soaring oil prices to rising Treasury yields, weighed on Asian equities, with local pressures deepening losses across markets, said Yeah Kim Leng, professor of economics at Sunway University's Jeffrey Cheah Institute on Southeast Asia.

For Malaysia, global macro headwinds were amplified by relentless foreign outflows that weighed on the ringgit, with overseas investors extending their selling streak, said Leng.

Malaysian stocks fell 1.3% after dropping as much as 1.6% earlier in the day, their weakest intraday performance since March. Broad-based losses in banking, industrial and consumer shares weighed on the benchmark index.

"Over the coming weeks, KLSE's outlook hinges critically on whether the 1,700 psychological level can hold," said Leng.

In Singapore, the benchmark index slipped 0.4% after dropping as much as 0.8% earlier in the session, led lower by financial, technology and consumer stocks.

Among currencies, the Malaysian ringgit weakened 0.3%, while the South Korean won slipped 0.3% against the dollar. The Thai baht lost 0.2% and the Indonesian rupiah eased 0.1%.

Investors are awaiting US non-farm payrolls data on Friday for clues on the Federal Reserve's policy path after markets ramped up expectations for further rate increases, while also monitoring developments in the Middle East and their impact on energy prices and inflation.

Uploaded by Magessan Varatharaja