Bareksa.com - Indonesian shares hit their lowest in more than two months on Thursday amid foreign selling of large caps and concerns about the ability of the incoming government to enforce reforms, while Thai stocks fell after data showed weak consumer confidence.

Most other Southeast Asian stock markets edged down, in line with Asian peers after a slew of weak global manufacturing data.

Indonesia underperformed the region with a loss of 1.9 percent at 5,041.89, falling at one point to 5,039.32, the lowest since July 22.

Shares of Astra International dropped 4.3 percent and Telkom Indonesia was down 2.3 percent as foreign investors were net sellers of the stocks, Thomson Reuters data showed.

Sentiment was hit after the ruling coalition, led by president-elect Joko Widodo's party, lost the parliament head election to the opposition, led by losing presidential candidate Prabowo Subianto's party, brokers said.

"Prabowo's coalition has won the package for parliament speaker. This will bring plenty of challenges to pass through policies and reforms," said John Teja, director of broker Ciptadana Securities.

In Bangkok, the main SET index was down 0.6 percent.

Consumer confidence in Thailand dropped in September for the first time since the military coup in May, a university survey showed, adding to evidence that authorities haven't yet been able to get an economic recovery on track.

Thai shares eked out a modest gain in the previous session after the government unveiled stimulus measures to revive domestic economy.

Large caps traded mixed on Thursday. Shares of Kasikornbank were down 0.9 percent after a big lot deal at a lower-than-market price, while PTT rallied at one point to its highest since May 2011 after domestic gas price hikes.

Investors awaited the outcome of the European Central Bank's (ECB) policy meeting on Thursday, brokers said.

"External factors may weigh on market sentiment but we believe the downside appears limited as domestic stimulus measures from the new government and speculation on ECB should lend support," said strategists with broker Phillip Securities in a report.

The Philippine main index slid to the lowest since Sept. 16, led by the country's biggest firm by market value, Philippine Long Distance Telephone. Singapore's Straits Times Index fell to its lowest since July 1, with property shares such as CapitaLand among losers.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, with the downturn potentially limited by market closures in both China and Hong Kong for public holidays.

Dwindling demand hurt factory activity across much of Asia and Europe in September, and mixed manufacturing indicators in the Americas on Wednesday raised the chances of slower global
economic growth in the months ahead. (Source : Reuters)