SINGAPORE: Southeast Asian stock markets, except Vietnam, slipped on Thursday, in line with regional currencies and equities that lost their appeal after US President Donald Trump’s proposal for a tax overhaul lifted the dollar and bond yields.

Trump proposed on Wednesday the biggest tax reform in three decades, a plan that would also lower corporate and small-business income tax rates, but could add trillions of dollars to the deficit.

“Basically, today’s story is depreciation in currencies - the Asian forex, due to a strong rise in the US dollar,” said Rakpong Chaisuparakul, an analyst with Bangkok-based KGI Thailand.

“Equity flow is slowing alongside the currencies, net foreign buying in most countries in Asia is slowing since Tuesday.”

The dollar index, which measures the greenback against a basket of six major currencies, climbed to a one-month high, while the US 10-year Treasury yield rose to its highest since July 13.

The dollar’s strength also helped pull down Asian shares to one-month lows.

Asian currencies took a beating after Trump’s tax proposal, with the Thai baht and the Indonesian rupiah declining about half a percent on Thursday.

As well, foreign investors have sold shares worth about $700 million in Indonesia this month, and about $1 billion each in India and South Korea.

In Southeast Asia, Philippine shares closed 0.8 percent lower on profit-booking, hit by industrials and financials. The index touched a record high last week.

JG Summit Holdings, the top loser, shed as much as 3.3 percent.

“It is still some profit-taking but I think this is a healthy correction and looking forward, a further advance in the index could still be justified, particularly with our forecasted earnings growth for the year,” said Jeffrey Lucero, an equity research analyst with Manila-based RCBC Securities.

Singapore dropped 0.3 percent, dragged down by financials and telecom stocks.

Oversea-Chinese Banking Corp snapped six straight sessions of gains to close 0.5 percent lower.

The Thai index fell 0.2 percent, reversing early gains, as energy stocks and financials dropped.

Oil and gas company PTT Pcl fell about 1 percent.

Malaysia and Indonesia lost 0.4 percent each, while Vietnam rose slightly as consumer staples gained, with beer maker Sabeco up 4.4 percent.—Reuters