SE Asia Stocks-Mark time ahead of Fed meeting

By Chris Thomas

Dec 12 (Reuters) - Most Southeast Asian stock markets marked

time on Tuesday with investors awaiting the U.S Federal

Reserve's policy meeting for cues about the world's largest

economy, while Vietnam shares rose up to 1.5 percent after a

sharp drop in the previous session.

The Fed is widely expected to raise interest rates at its

two-day policy meeting that will end on Wednesday, which could

lead to foreign fund outflows from emerging markets.

Capital outflows from emerging markets may accelerate

especially since the United States is poised to raise its

interest rates again, said Rachelle Cruz, an analyst with

Manila-based AP Securities.

Singapore shares fell 0.4 percent after two days of

sharp gains with index heavyweight Jardine Matheson Holdings

being the top loser.

The FTSE Straits Times Index climbed more than 2 percent in

the previous two sessions, and over 20 percent this year as of

Monday's close.

DBS Bank said it remains optimistic about the city-state's

economic growth, expecting headline GDP growth to hover around 3

percent in the next two years.

"Drivers of the economy could interchange, with services

likely to take a commanding position in the coming years. The

global environment will be conducive for small, trade-dependent

economies, such as Singapore, but development in China will be

key to watch," DBS said in a research note.

Philippine shares were down after three straight

sessions of gains. BDO Unibank and SM Investments Corp

were the biggest drags, shedding 2 percent and 1.2

percent, respectively.

The country's trade deficit widened to a record $2.84

billion in October, while the jobless rate fell to 5 percent,

data showed.

Malaysian shares were marginally higher, while Thai

shares gave up early gains to trade lower.

Malaysia's industrial production in October rose

3.4 percent from a year earlier, slowing in pace for the second

straight month.

In Vietnam, brewers Sabeco and Habeco were

the biggest boost. Both stocks surged 7 percent each.

A unit of Singapore's Thai Beverage has emerged as

the only prospective bidder for state-owned shares in Sabeco

that has declared that it could lead to it owning 25 percent or

more of Vietnam's biggest brewer.

Thai Beverage is expected to make an announcement on its bid

later in the day.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS: Change at 0356 GMT

Market Current Previous close Pct Move

Singapore 3448.78 3460.45 -0.34

Bangkok 1704.47 1712.48 -0.47

Manila 8321.82 8358.57 -0.44

Jakarta 6030.064 6026.633 0.06

Kuala Lumpur 1719.97 1719.47 0.03

Ho Chi Minh 921.88 917.45 0.48

Change on year

Market Current End 2016 Pct Move

Singapore 3448.78 2880.76 19.72

Bangkok 1704.47 1542.94 10.47

Manila 8321.82 6840.64 21.65

Jakarta 6030.064 5296.711 13.85

Kuala Lumpur 1719.97 1641.73 4.77

Ho Chi Minh 921.88 664.87 38.66

(Reporting by Chris Thomas in Bengaluru; Editing by Subhranshu

Sahu)