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SINGAPORE - Southeast Asian markets fell on Monday as nervous investors sold blue chips such as Singapore Airlines ahead of a slate of earnings reports by U.S. financials this week.
Analysts said the reports from U.S. banks such as JPMorgan Chase will give a clearer indication on whether the worst of the subprime fallout is over.
The Singapore benchmark index fell by 2.68 percent to its lowest level this month, trailing sharper drops in Japan, Hong Kong and Shanghai. But it stayed above the pyschological 3,000 mark at 3042.96.
Malaysia fell by a more modest 1.07 percent as planters erased last week's gains, while Indonesia declined 1.37 percent on banks. The Philippine index was down 0.77 percent.
Some technical analysts believe global financial markets, including those in Southeast Asia, may have already bottomed out.
"A lot of the evidence we're getting now is suggesting that the low is in place and are looking for perhaps at another
re-test this quarter of those lows," said Paul Nesbitt, a London-based technical analysis director at Fortis Private Bank.
"Once we get out of the second quarter, I think it'd be evident that the tide has turned," added the chartist.
Singapore property heavyweights suffered the heaviest losses.
City Developments fell 5.2 percent, while rivals Keppel Land and CapitaLand retreated 4.2 percent and 3.5 percent respectively.
Bourse operator Singapore Exchange closed 4.2 percent lower ahead of its third-quarter earnings report to be released on Monday evening.
"I think quite evident is that people are just trading, rather than putting in long-term money, though there's some,"
said a Singapore dealer.
"At worst, we might test new lows, but a lot of things that I look at seem to suggest that we've bottomed out," he added.
Banks also bore the brunt of the day's losses with UOB falling 2.8 percent, DBS down 2.4 percent and OCBC closing 2 percent lower.
In Malaysia, planters failed to extend gains despite strong palm prices. Instead, IOI Corp fell 4.1 percent, dragging down the index. Top palm producer Sime Darby also sank 2.8 percent, while rival KL Kepong gave up 3 percent.
Topping the losers' list in Jakarta was telecoms firm PT Telekomunikasi Indonesia , which slipped 1.6 percent.
The country's largest lender PT Bank Mandiri Tbk tumbled 4.3 percent, while PT Bank Central Asia Tbk eased 1.7 percent.
Thailand and Vietnam's stock markets were closed on Monday for national holidays. -- REUTERS
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