SE Asia Stocks-Cautious ahead of ECB meet; BOJ keeps rates steady

By Ambar Warrick

July 20 (Reuters) - Southeast Asian stock markets were

sluggish on Thursday ahead of a meeting by the European Central

Bank, with investors looking for cues on how it will unwind

unconventional policy that has kept borrowing costs at rock

bottom.

The ECB meeting later in the global day is expected to lay

the groundwork for an autumn policy shift, after President Mario

Draghi last month opened the door to tweaks in a speech that was

viewed as unexpectedly hawkish.

"The authorities are expected to prepare the ground for a

gradual tapering exercise, which implies slower pace of stimulus

rather than reversing course to tighten policy," DBS Bank said

in a research note, referring to the ECB meeting.

Most analysts polled by Reuters expect no change in policy,

but a sizable minority predicted a tweak in the bank's guidance.

Separately, the Bank of Japan kept monetary policy steady on

Thursday, as widely expected, and pushed back by a year the

timing for achieving its ambitious 2 percent inflation target,

reinforcing expectations it will lag well behind other major

central banks in scaling back its massive stimulus programme.

"I think what's important is their (the central banks')

statements on the health of their respective economies," said

Lexter Azurin, a senior analyst with Manila-based AB Capital

Securities.

In Southeast Asia, Philippine shares rose marginally,

led by financials and real estate stocks. Metropolitan Bank and

Trust rose as much as 1.2 percent, while Ayala Land

gained 0.7 percent.

"Philippine markets are rising because most investors are

anticipating favourable second-quarter earnings," Azurin said.

Indonesian shares rose as much as 0.3 percent, with

consumer staples and industrial stocks leading the gainers.

Unilever Indonesia rose as much as 1.1 percent,

while Waskita Karya saw its biggest intraday

percentage gain in over one month.

Indonesia's real GDP growth is expected to rise to 5.2

percent in 2017 and 5.6 percent in 2018, from 5.0 percent in

2016, Fitch Ratings said.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS: Change as of 0321 GMT

Change on day

Market Current previous Pct Move

close

Singapore 3320.48 3325.07 -0.14

Bangkok 1577.22 1575.85 0.09

Manila 7979.16 7972.9 0.08

Jakarta 5819.843 5806.69 0.23

Kuala Lumpur 1755.3 1757.27 -0.11

Ho Chi Minh 767.73 771.3 -0.46

Change so far in 2017

Market Current End 2016 Pct Move

Singapore 3320.48 2880.76 15.26

Bangkok 1577.22 1542.94 2.22

Manila 7979.16 6840.64 16.64

Jakarta 5819.843 5296.711 9.88

Kuala Lumpur 1755.3 1641.73 6.92

Ho Chi Minh 767.73 664.87 15.47

(Reporting by Ambar Warrick in Bengaluru; ; Editing by Biju

Dwarakanath)