SE Asia Stocks-Most markets muted in pre-holiday trade, Philippines falls over 2%

* Philippine index hits lowest since Jan. 2 * Indonesia extends losses for second straight day * Malaysia's Nov. CPI rises 0.9% year-on-year By Shruti Sonal Dec 20 (Reuters) - The Philippine stock market slipped to its lowest in nearly a year in thin trading on Friday, while its peers in Southeast Asia held steady as investors waited for clarity in the Sino-U.S. trade deal. Philippine shares fell more than 2% to hit their lowest level since Jan. 2, hurt by losses in financials and industrials stocks. Lenders in the country have come under pressure following local media reports that the central bank was probing about 10 banks for their ties with Australia's scandal-hit Westpac Banking Corp. Another reason for the selloff, according to Richard Laneda, a senior research manager at COL Financial Group, was markets trying to align with the FTSE index rebalancing due later in day. The FTSE Philippines Index was down over 3%.7 BDO Unibank Inc extended losses for the third straight session, while Security Bank Corp fell about 4%. "I think the outflow, combined with the lack of buying near the end of the year, has resulted in a big decline in big index names," Laneda said. Meanwhile, the documentation work for the phase-1 trade deal is going through "a technical, legal scrub" and would be ready signing in early January, U.S. Treasury Secretary, Steve Mnuchin, said on Thursday. China on the other hand has announced a list of import tariff exemptions for six oil and chemical products from the United States. "Investors are avoiding making big bets ahead of the holiday season as sentiment has been mixed and amid the progress of U.S. President Donald Trump's impeachment and simultaneous positive developments on the interim trade deal", said Nicholas Yon, equity research analyst at Lim & Tan Securities. Malaysian equities extended losses, dragged down by industrials and financials. Hong Leong Bank Bhd was down 2% and Malayan Banking Bhd 1.3%. The country's November consumer price index rose by a less-than-expected 0.9% because of a fall in prices for clothing and footwear and lower transport costs, government data showed on Friday. Trade-sensitive Singapore shares eked out marginal gains, while Thai and Indonesian stocks dropped. For Asian Companies click; SOUTHEAST ASIAN STOCK MARKETS AS at 0504 GMT Change on the day Market Current Previous close Pct Move Singapore 3209.97 3207.42 0.08 Bangkok 1571.91 1573.51 -0.10 Manila 7483.24 7653.94 -2.23 Jakarta 6237.478 6249.93 -0.20 Kuala Lumpur 1592.61 1595.72 -0.19 Ho Chi Minh 955.22 952.26 0.31 Change so far in 2019 Market Current End 2018 Pct Move Singapore 3209.97 3068.76 4.60 Bangkok 1571.91 1563.88 0.51 Manila 7483.24 7,466.02 0.23 Jakarta 6237.478 6,194.50 0.69 Kuala Lumpur 1592.61 1690.58 -5.80 Ho Chi Minh 955.22 892.54 7.02 (Reporting by Shruti Sonal; Editing by Arun Koyyur)