SE Asia Stocks-Decline as Trump steps up trade war with China

* Philippine shares fall to 2-month low

* Singapore down for a second straight session

By Sumeet Gaikwad

Sept 18 (Reuters) - Southeast Asian stock markets fell on

Tuesday, in line with Asian peers, after U.S. President Donald

Trump said he will impose tariffs on an additional $200 billion

worth of Chinese imports, escalating the trade conflict between

the world's two largest economies.

Trump stepped-up his trade war with China on Monday after

imposing 10 percent tariffs Chinese imports. The incumbent

warned if China takes retaliatory action against U.S. farmers or

industries he will further pursue tariffs on approximately $267

billion of goods.

"Given that markets have been bracing for this tariff

announcement, we expect a muted rather than dramatic sell-off in

Asian equities and currencies today," Mizuho Bank said in a

note.

"Tariffs that the US enacted on China may be a (relative)

subsidy to American businesses, as well as non-Chinese foreign

exporters,"

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

dropped 0.4 percent.

Singapore shares declined 0.7 percent in their second

straight losing session as financials weighed on the benchmark.

The city-state's top lenders DBS Group Holdings and

United Overseas Bank fell over 1 percent each.

Philippines stocks fell over 1 percent to a two-month

low, dragged by losses across the board. Blue-chips SM

Investments Corp and BDO Unibank lost nearly 2

percent each.

Malaysian shares resumed trade on a weak note after

a holiday as financials dragged the benchmark 0.6 percent lower.

CIMB Group Holdings fell over 2 percent while RHB

Bank Bhd was down 1.3 percent.

"There could be a diversion of investment from China to

other ASEAN countries, as manufacturers seek to shield

production from U.S. tariffs," Mizuho added.

One of the worst performing emerging market this year,

Indonesia, was trading lower led by losses in consumer

staples stocks.

Index heavyweight Unilever Indonesia fell 1

percent while Bank Mandiri lost 1.6 percent.

The index of the country's 45 most liquid stocks

was down 0.8 percent.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS: AS AT 0301GMT

Change on day

Market Current Previous Close Pct Move

Singapore 3118.97 3141.4 -0.71

Bangkok 1716.85 1718.39 -0.09

Manila 7320.61 7413.56 -1.25

Jakarta 5794.29 5824.257 -0.51

Kuala Lumpur 1793.87 1803.76 -0.55

Ho Chi Minh 984.82 987.61 -0.28

Change on year

Market Current End 2017 Pct Move

Singapore 3118.97 3402.92 -8.34

Bangkok 1716.85 1753.71 -2.10

Manila 7320.61 8558.42 -14.46

Jakarta 5794.29 6355.654 -8.83

Kuala Lumpur 1793.87 1796.81 -0.16

Ho Chi Minh 984.82 984.24 0.06

(Reporting by Sumeet Gaikwad in Bengaluru; Editing by Vyas

Mohan)