SE Asia Stocks-Indonesia posts record closing high, Singapore falls after 4 days of gains

By Chris Thomas

Dec 14 (Reuters) - Most Southeast Asian stock markets jumped

on Thursday after the U.S. Federal Reserve's caution on

inflation tempered expectations for interest rate tightening in

2018, while Singapore shares dropped after four straight

sessions of gains.

Though the Fed delivered a quarter percentage point rate

hike as widely expected, it left its rate outlook for the coming

years unchanged and projected inflation to remain shy of its

goal for another year.

Higher Fed rates can make U.S. securities look more

attractive compared with risky assets such as Asian equities,

leading to outflows of funds from emerging markets, including

the Southeast Asian region.

Indonesian shares rose 1 percent to a record close,

boosted by conglomerate Astra International Tbk PT and

cement manufacturer Indocement Tunggal Prakarsa Tbk PT

.

An index of the country's 45 most liquid stocks

also scaled an all-time high.

Malaysian shares jumped 1.2 percent to a two-month

closing high, with banking stocks accounting for most of the

gains.

The World Bank raised its 2017 growth estimate for

Malaysia's economy to 5.8 percent, which would be the biggest

annual expansion since 2014, buoyed by rising domestic demand

and an improved labour market. The lender had projected a growth

of 5.2 percent in October.

Public Bank Bhd climbed 2.2 percent to a

three-and-a-half-year closing high, while Malayan Banking Bhd

and CIMB Group Bhd gained 2.6 percent and

3.1 percent, respectively.

Philippine shares climbed 1.2 percent to close at a

five-week high after the Congress late on Wednesday approved a

much awaited tax-reform bill that President Rodrigo Duterte

needs to push ahead with his economic agenda.

The reforms will lower personal income taxes, expand the

value-added tax base, raise taxes on petroleum products,

automobiles, and slap taxes on some sugar-sweetened beverages,

among others.

Heavyweights SM Prime Holdings and SM Investments

Corp were the top market movers, rising 3.6 percent and

2.3 percent, respectively.

Conglomerate GT Capital Holdings Inc was the

biggest gainer on the index, climbing 5 percent to its highest

close since May 9.

After market hours, the central bank kept its key interest

rate steady, dismissing concerns that the economy is at risk of

overheating from strong domestic demand and investments.

Vietnam shares closed 1.2 percent higher, supported

by financials and consumer staples.

Meanwhile, Singapore shares declined 1 percent on

profit-taking with financials accounting for most of the falls.

Top lenders Oversea-Chinese Banking Corp, DBS

Group and United Overseas Bank Ltd dropped

1.3 percent to 2.2 percent.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS

Change on day

Market Current Previous close Pct Move

Singapore 3435.78 3468.77 -0.95

Bangkok 1714.99 1706.93 0.47

Manila 8461.06 8359.61 1.21

Jakarta 6113.653 6054.604 0.98

Kuala Lumpur 1759 1737.66 1.23

Ho Chi Minh 935.85 924.4 1.24

Change on year

Market Current End 2016 Pct Move

Singapore 3435.78 2880.76 19.27

Bangkok 1714.99 1542.94 11.15

Manila 8461.06 6840.64 23.69

Jakarta 6113.653 5296.711 15.42

Kuala Lumpur 1759 1641.73 7.14

Ho Chi Minh 935.85 664.87 40.76

(Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu

Sahu)