SE Asia Stocks-Cautious as investors await U.S. inflation data; Philippines drops

* Philippines weakest market in region

* Most markets subdued, Vietnam closed for holiday

By Christina Martin

Feb 14 (Reuters) - Most Southeast Asian stock markets traded

on a cautious note on Wednesday, mirroring broader Asia as

investors awaited a U.S. inflation report that could hold clues

on rate hike movements globally.

Investors said the U.S. consumer price readings due later in

the day will be key to where stocks move in the short term,

given it was the risk of accelerating inflation that sparked the

recent global equity rout.

MSCI's broadest index of Asia-Pacific shares outside Japan

rose 0.4 percent.

"The markets are on tenterhooks awaiting tonight's critical

U.S. CPI data. Last week, the market took the uptick in

inflation very poorly," said Stephen Innes, head of trading for

Asia Pacific at Oanda.

"Will we see a reply to last week's tumult if inflation

rears its ugly head? An inflation scare could push Treasury

yields much higher and send equities spiralling lower."

The Philippine index dropped as much as 0.8 percent,

making it the worst performer in the region, dragged by

industrials and financials.

"The PSI is struggling. The currency (peso) is hurting due

to expanding trade deficit, but more so traders are worried

about more outflow," said Innes.

The country has not been accumulating reserves since 2012,

and its central bank projects there was a current account

deficit last year and it forecasts a deficit of $700 million

this year.

San Miguel Corp was the biggest drag on the main

index, slumping as much as 4.6 percent to an over-three-week

low.

Singapore shares inched down slightly, as financial

stocks weighed.

Singapore's fourth-quarter economic growth was revised lower

on a quarter-on-quarter basis on Wednesday, due to a contraction

in the manufacturing sector which has come under pressure

recently.

Heavyweights Oversea-Chinese Banking Corporation Ltd

and United Overseas Bank Ltd reported strong

quarterly net profit growth but downgraded their exposure to the

weak oil and gas sector, making them the biggest losers on the

index.

Malaysia edged down 0.2 percent, with utilities

leading the losses, while shares in Indonesia and

Thailand inched up slightly.

Vietnam was closed for a holiday.

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SOUTHEAST ASIAN STOCK MARKETS: Change at 0358 GMT

Change on the day

Market Current Previous close Pct Move

Singapore 3414.53 3415.07 -0.02

Bangkok 1802.84 1800.03 0.16

Manila 8508.16 8570.14 -0.72

Jakarta 6581.615 6578.178 0.05

Kuala Lumpur 1833.92 1833.02 0.05

Change on year

Market Current End 2017 Pct Move

Singapore 3414.53 3402.92 0.34

Bangkok 1802.84 1753.71 2.80

Manila 8508.16 8558.42 -0.59

Jakarta 6581.615 6355.654 3.56

Kuala Lumpur 1833.92 1796.81 2.07

(Reporting by Christina Martin in Bengaluru; Editing by Sunil

Nair)