SE Asia Stocks-Most follow Asia lower; Philippines down 1.7 pct

* Philippines snaps three sessions of gains

* Indonesia falls for a third straight session

*

By Karthika Suresh Namboothiri

May 16 (Reuters) - Most Southeast Asian stock markets

slipped on Wednesday tracking Asian peers after North Korea

called off talks with Seoul while the 10-year U.S. Treasury

yield hit a seven-year high, sparking fears of faster fund

outflows from regional equities.

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

dropped 0.2 percent after the U.S. 10-year paper

crossed 3 percent on Tuesday, hurting U.S. equity markets on

concerns it would undercut stock valuations.

"If bonds are embarked on a journey to higher yields, then

the recent outflows from troubled EM (emerging markets)

countries could become even greater," ING said in a note.

North Korea threw into question next month's summit between

Kim Jong Un and U.S. President Donald Trump, denouncing on

Wednesday U.S.-South Korean military exercises as a provocation

and calling off high-level talks with Seoul.

In Southeast Asia, Philippines shares erased earlier

gains and were trading down as much as 1.7 percent as investors

booked some profits following three consecutive days of gain.

A fall in March remittances also hurt sentiment, said

Charles William Ang, Associate Analyst at Manila based COL

Financial Group, Inc.

Foreign remittances into the Philippines in March fell 9.8

percent from last year, its steepest drop in 15 years, according

to central bank data released on Tuesday.

SM Investment slid as much as 2.2 percent while real

estate developer SM Prime Holdings fell over 2.5

percent.

Singapore stocks shed half a percent, dragged down by

real estate stocks. City Development fell as much as

3.2 percent.

Indonesian shares slid for a third straight session,

down as much as 1.6 percent, dragged down by financials and

consumer stocks. Unilever Indonesia, down as much as

4.5 percent, was the biggest drag.

Data showed on Tuesday the country posted its biggest trade

deficit in four years in April.

Meanwhile, Malaysian stocks climbed 0.4 percent,

with telecom service provider Maxis Bhd gaining 2.7

percent and Astro Malaysia rising as much as 2.9

percent.

A senior adviser to the Malaysian government said on Tuesday

that a strategy for the removal of goods and services tax would

be announced within hundred days.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS AS AT 0420 GMT

Change on the day

Market Current Previous close Pct Move

Singapore 3536.29 3540.23 -0.11

Bangkok 1755.98 1766.86 -0.62

Manila 7797.19 7885.97 -1.13

Jakarta 5772.409 5838.116 -1.13

Kuala Lumpur 1854.73 1848.2 0.35

Ho Chi Minh 1069.78 1073.5 -0.35

Change on year

Market Current End 2017 Pct Move

Singapore 3536.29 3402.92 3.92

Bangkok 1755.98 1753.71 0.13

Manila 7797.19 8558.42 -8.89

Jakarta 5772.409 6355.654 -9.18

Kuala Lumpur 1854.73 1796.81 3.22

Ho Chi Minh 1069.78 984.24 8.69

(Reporting by Karthika Suresh Namboothiri; Editing by Vyas

Mohan)