SE Asia Stocks-Flat to higher after MSCI's thumbs down to China shares

By Anusha Ravindranath

June 15 (Reuters) - Southeast Asian stock markets were flat

to slightly higher on Wednesday after index provider MSCI turned

its back on Chinese A-shares, easing some market concerns, but

worries continued over Britain's potential departure from the

European Union.

U.S. index provider MSCI Inc on Tuesday declined to

add domestic Chinese stocks to one of its key benchmarks,

delivering a blow to Chinese policymakers hoping to broaden the

appeal of their currency.

"It seems that it is a welcome development that China's

domestic equities were denied entry to MSCI," said Manny Cruz an

analyst with Asiasec Equities Inc.

"If ever that will push through, most of the regional funds

would be hurt, as they would be repositioned from other Asian

markets towards China," Cruz added.

Philippine stocks were up almost half a percent,

snapping the previous session's losses, led by utilities.

Shares of Aboitiz Power Corp rose 1.43 percent and

Metro Pacific Investments Corp gained 3.4 percent.

Philippine stocks could receive a short-term boost despite

the weakness in overnight markets after MSCI gave Chinese

A-shares a thumbs-down, research firm SB Equities said in a

note.

Investors are also keeping an eye out for the U.S. Federal

Reserve's call on interest rates. Fed funds futures show

investors see almost no chance of the Fed raising interest rates

on Wednesday after a dismal U.S. payrolls report for May.

Singapore shares rebounded from Tuesday's losses

early in the day before trading almost flat, while Indonesian

stocks drifted lower on profit-taking.

"It is more of a correction move and the (Indonesian)

markets are down on continuous profit-taking," Cruz said.

Malaysian and Thai shares remained flat,

while Vietnam stocks were down almost half a percent.

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SOUTHEAST ASIAN STOCK MARKETS

STOCK MARKETS

Change on the day

Market Current prev close Pct Move

Singapore 2770.29 2768.33 0.07

Bangkok 1428.05 1428.1 0.00

Manila 7496.05 7460.12 0.48

Jakarta 4794.001 4821.59 -0.57

Kuala Lumpur 1628.04 1626.11 0.12

Ho Chi Minh 623.25 625.43 -0.35

Change so far this year

Market Current End prev yr Pct Move

Singapore 2770.29 2882.73 -3.90

Bangkok 1428.05 1288.02 10.87

Manila 7496.05 6952.08 7.82

Jakarta 4794.001 4593.008 4.38

Kuala Lumpur 1628.04 1692.51 -3.81

Ho Chi Minh 623.25 579.03 7.64

(Reporting by Anusha Ravindranath in Bengaluru; Editing by

Anupama Dwivedi)