SE Asia Stocks-Largely down on renewed North Korea concerns

By Binisha Ben

Sept 22 (Reuters) - Most Southeast Asian stock markets fell

on Friday in line with broader Asia, as investor sentiment took

a hit following a report that North Korea could conduct another

hydrogen bomb test.

North Korean Foreign Minister Ri Yong Ho said he believes

the country could consider a nuclear test on an "unprecedented

scale" in the Pacific Ocean, South Korea's Yonhap news agency

reported.

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

gave up earlier gains and was last down 0.5

percent.

Meanwhile, S&P Global Ratings downgraded China's long-term

sovereign credit rating on Thursday, citing increasing risks

from its rapid build-up of debt.

"Credit ratings are very lagging indicators. Moody's and

Fitch already downgraded in May for the same reason. Markets

have already factored that in, so it's not a very big surprise,"

said Taye Shim, head of research at Mirae Asset Sekuritas.

Indonesian shares fell as much as 0.4 percent,

weighed down by consumer staples and telecom services stocks

"The market is eyeing Bank of Indonesia's policy rate

decision today. If they do lower the rate, there could be a

reversal of this trend, which is in the red," Shim said.

The central bank, which surprised the market with a rate cut

last month, is expected to keep its benchmark interest rate

unchanged on Friday, a Reuters poll showed.

Telekomunikasi Indonesia Tbk PT fell 1.1 percent

and Unilever Indonesia Tbk declined by 2.1 percent.

The index of the country's 45 most liquid stocks

fell 0.6 percent.

Singapore shares extended falls into a fourth

session, shedding as much as 0.4 percent to their lowest in a

week.

Financial and real estate stocks were among the biggest

losers, with DBS Group Holdings, the city-state's top

lender, declining 0.1 percent and CapitaLand Trust

shedding 1.2 percent.

Malaysia's stock market was closed for a local

holiday.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS : Change at 0420 GMT

Market Current Previous Pct Move

Close

Singapore 3212.91 3213.82 -0.03

Bangkok 1661.18 1670.49 -0.56

Manila 8278.56 8286.86 -0.10

Jakarta 5897.191 5906.573 -0.16

Ho Chi Minh 806.33 803.93 0.30

Change on year

Market Current End 2016 Pct Move

Singapore 3212.91 2880.76 11.53

Bangkok 1661.18 1542.94 7.66

Manila 8278.56 6840.64 21.02

Jakarta 5897.191 5296.711 11.34

Ho Chi Minh 806.33 664.87 21.28

(Reporting by Binisha Ben in Bengaluru; Editing by Subhranshu

Sahu)