SE Asia Stocks-Flat to higher; Singapore falls on financials

By Aaron Saldanha

Sept 29 (Reuters) - Most Southeast Asian stock markets

traded flat to higher on Friday, but were on track to close the

week lower on capital outflows as rising possibilities of a U.S.

rate hike lifted Treasury yields toward nine-year highs and

boosted borrowing costs across the region.

"People's expectation of a rate hike last month was below 50

percent and now it is almost close to 70 percent based on the

implied probability of futures. But I think I would say Asia had

a good rally over the last two weeks," said Joel Ng, an analyst

with Singapore-based KGI Securities.

"Looking at the data, we have seen an ETF flowback, maybe to

the United States or Japan, so those are the two major moves

over the last two weeks."

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

rose 0.2 percent, but was down 2.1 percent for

the week.

Philippine shares were Southeast Asia's biggest

gainers on Friday, rising 1 percent on the back of strong gains

in the industrial and real estate sectors.

Power generator First Gen Corp and index

heavyweight SM Investment rose over 3 percent each.

For the week, Philippine shares were down 0.5 percent after

three consecutive weeks of gains.

Indonesian shares climbed 0.8 percent, driven by

gains in financials and consumer staples such as Bank Rakyat

Indo and Unilever Indonesia Tbk.

Shares were on course to end the week 0.4 percent lower.

Thai shares were flat ahead of a slew of trade data

releases later in the day, with analysts expecting the monthly

production index rising to 2.8 percent on year.

On the other hand, Singapore shares were Southeast

Asia's biggest losers, hurt by financials. DBS Group Holdings

was the biggest drag, declining as much as 1.6

percent.

"Singapore banks have still relatively held up pretty well,

they have had a good run with 25 percent gains over the last

year," Ng added.

For the week, Singapore shares have fallen 0.3 percent.

Malaysian shares were flat after hitting their

lowest in two months. Financial and telecom stocks were the

biggest losers.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS: Change as at 0354 GMT

Change on day

Market Current Previous Close Pct Move

Singapore 3209.59 3227.14 -0.54

Bangkok 1666.84 1666.36 0.03

Manila 8239.37 8156.04 1.02

Jakarta 5887.794 5841.047 0.80

Kuala Lumpur 1758.53 1758.06 0.03

Ho Chi Minh 805.38 804.82 0.07

Change on year

Market Current End 2016 Pct Move

Singapore 3209.59 2880.76 11.41

Bangkok 1666.84 1542.94 8.03

Manila 8239.37 6840.64 20.45

Jakarta 5887.794 5296.711 11.16

Kuala Lumpur 1758.53 1641.73 7.11

Ho Chi Minh 805.38 664.87 21.13

(Reporting by Aaron Saldanha in Bengaluru; Additional reporting

by Sumeet Gaikwad; Editing by Subhranshu Sahu)