SE Asia Stocks-Most fall as oil slumps, Thai shares edge up

By Christina Martin

Feb 8 (Reuters) - Most Southeast Asian stock markets traded

lower on Wednesday on a sharp drop in oil prices, while Thai

shares edged up ahead of a central bank meeting on interest

rates.

Asian shares also fell from four-month highs as investor

confidence was hurt by ongoing political and economic

uncertainty in the United States and Europe.

"The yen recovered and bounced back while crude oil

continued to weaken and regional equities took their cue from

those two movements of the commodities," said Manny Cruz, chief

strategist at Asiasec Equities Inc.

Oil prices fell to a two-week low on Wednesday, extending

losses, as a massive increase in U.S. fuel inventories and a

slump in Chinese demand implied that global crude markets remain

oversupplied despite OPEC-led efforts to cut output.

"The weakness in crude oil can also be an indication that

the global economy may not be doing well under the Trump

administration, considering his protectionist approach," Cruz

added.

However, the Thai index managed a slight rise, with

gains spread across sectors, as investors awaited the central

bank's rate decision later in the day.

Thailand's central bank is expected to leave its already-low

benchmark interest rate unchanged, after it last cut rates in

April 2015, a Reuters poll indicated.

Philippine shares headed for a second consecutive

session of losses, slipping 0.4 percent, with real estate,

consumer staples and financials pulling the index down.

SM Prime Holdings, Metropolitan Bank and

Universal Robina Corp were among the worst performers

on the index.

A Reuters poll showed that inflation in January, seen at its

highest in over two years, is not expected to impact the central

bank's policy decision due on Thursday.

Singapore shares, which gained in the last two

sessions, fell 0.3 percent, dragged down by telecoms, financials

and real estate stocks.

Singapore Telecommunications, the biggest loser on

the index, lost over 1 percent while City Development

fell as much as 1.8 percent, its biggest percentage loss in two

weeks.

Indonesian shares were set for their biggest

percentage loss in over two weeks, down as much as 0.4 percent.

Vietnam and Malaysia were largely flat.

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SOUTHEAST ASIAN STOCK MARKETS: Change at 0425 GMT

Market Current Previous Close Pct Move

Singapore 3060.14 3071.64 -0.37

Bangkok 1588.27 1582.52 0.36

Manila 7230.25 7262.64 -0.45

Jakarta 5357.593 5381.475 -0.44

Kuala Lumpur 1688.12 1688.84 -0.04

Ho Chi Minh 702.03 701.91 0.02

Change on year

Market Current End 2016 Pct Move

Singapore 3060.14 2880.76 6.23

Bangkok 1588.27 1542.94 2.94

Manila 7230.25 6840.64 5.70

Jakarta 5357.593 5296.711 1.15

Kuala Lumpur 1688.12 1641.73 2.83

Ho Chi Minh 702.03 664.87 5.59

(Reporting by Christina Martin; Editing by Sunil Nair)