SE Asia Stocks-Fall; Singapore slides as DBS profit disappoints

* Singapore shares drop 1.4 pct

* Asian shares slump on renewed worries of Sino-U.S. trade

spat

By Syed Saif Hussain Naqvi

Aug 2 (Reuters) - Singapore shares fell sharply on Thursday

as quarterly earnings of Southeast Asia's biggest lender, DBS

Group Holdings Ltd, fell short of expectations, while

other regional markets inched lower amid renewed worries over

the U.S.-China trade conflict.

Broader Asian shares slumped on Thursday after Washington

said on Wednesday President Donald Trump sought to ratchet up

pressure on China for trade concessions by proposing a higher 25

percent tariff on $200 billion worth of Chinese imports.

"Higher tariffs on China has re-ignited possibilities of a

trade war and if we look at U.S. Treasuries - it has reached 3

percent once more and that has made a case for emerging markets

to weaken," said Manny Cruz, analyst at Asiasec Equities Inc.

Benchmark 10-year U.S. Treasury note yield rose to its

highest in 2-1/2 months on Wednesday, breaking above 3 percent,

after the government said it intended to boost borrowing in the

bond market in the coming quarter.

Singapore shares shed 1.4 percent, set for their

third losing session in seven, after DBS Group's second-quarter

earnings missed market expectations as the impact of business

volume growth was moderated by lower trading income.

Singapore's United Overseas Bank will report

results on Friday, followed by Oversea-Chinese Banking Corp

next week.

Philippine shares also dropped, set for their third

declining session in nine, as SM Investments Corp and

Ayala Corp edged lower. The index gained more than 2

percent in the previous session.

Malaysian shares slipped and were headed for their

first decline in nine sessions, ahead of the country's trade

balance data due on Friday.

The trade surplus in Malaysia is expected to widen to 10.1

billion ringgit ($2.48 billion) in June, from 8.1 billion

ringgit in May.

Telecommunication and consumer goods stocks were the biggest

pull on the index, with Sime Darby Plantation and

Axiata group BHD dropping more than 1.5 percent each.

Indonesian shares held steady as losses in materials

stocks outweighed gains in financials.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS as at 0345 GMT

Change on the

day

Market Current Previous Pct Move

close

Singapore 3286.95 3329.01 -1.26

Bangkok 1716.12 1722.01 -0.34

Manila 7785.78 7838.22 -0.67

Jakarta 6026.492 6033.419 -0.11

Kuala Lumpur 1781.51 1788.31 -0.38

Ho Chi Minh 950.6 952.77 -0.23

Change on year

Market Current End 2017 Pct Move

Singapore 3286.95 3402.92 -3.41

Bangkok 1716.12 1753.71 -2.14

Manila 7785.78 8558.42 -9.03

Jakarta 6026.492 6355.654 -5.18

Kuala Lumpur 1781.51 1796.81 -0.85

Ho Chi Minh 950.6 984.24 -3.42

($1 = 4.0700 ringgit)

(Editing by Amrutha Gayathri)