SE Asia Stocks-Most slump; Malaysia extends losses amid economic uncertainty

* Singapore falls over 1 pct to 5-week low

* Malaysia down 1.6 pct, set for 3rd losing session

* Indonesia only gainer in region, gains more than 1 pct

By Karthika Suresh Namboothiri

May 23 (Reuters) - Most Southeast Asian stock markets fell

sharply on Wednesday as U.S. President Donald Trump tempered

optimism over trade talks between Washington and Beijing, with

Malaysia extending losses amid uncertainty over the size of debt

its previous government had left behind.

Broader Asian stocks outside Japan were down

0.4 percent after Trump said he was not pleased with recent

U.S.-China trade talks, renewing uncertainty.

"The on-and-off status of U.S.-China trade talks is

affecting sentiment. At some point, traders may just decide to

stay on the sidelines," said Liu Jinshu, director of research,

NRA Capital.

Singapore shares slid as much as 1.1 percent to its

lowest in more than five weeks, with financials dragging the

index.

Index heavyweight Oversea-Chinese Banking Corp

fell 1.5 percent, while DBS Group was down 1.2

percent.

Bank stocks are trading lower as they are likely to have

some exposure to Hyflux Ltd's debt, said Liu Jinshu.

The water treatment company said on Tuesday that it filed for

reorganisation after lower electricity prices hurt its

finances.

Singapore's annual headline inflation rate likely rose in

April from last month, a Reuters poll showed. The data is due

later in the day.

Malaysia's main index fell for a third straight

session, down as much as 1.6 percent.

Telecom company Axiata Group shed over 10 percent

after reporting weak quarterly earnings.

Malaysia's new finance minister said on Tuesday that the

previous government deceived the public and parliament over the

country's financial situation and state fund 1Malaysia

Development Bhd (1MDB).

The comments come amid worries that the new government's

populist promises could undermine economic prospects at an

increasingly challenging time.

Foreign stock inflows into Malaysia for 2018 have been wiped

out, with the market posting net outflows to the tune of $21.2

million as of May 21, according to data from OCBC Bank.

Malaysia's April annual inflation rate was slightly higher

than the 1.3 percent recorded in March, the slowest pace in

nearly two years, but was below the 1.6 percent forecast in a

Reuters poll.

Meanwhile, Indonesian shares gained as much as 1.5

percent, with Bank Negara Indonesia and Bank Mandiri

(Persero) both gaining more than 5 percent.

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SOUTHEAST ASIAN STOCK MARKETS AS AT 0438 GMT

Change on the day

Market Current Previous close Pct Move

Singapore 3506.51 3543.18 -1.03

Bangkok 1757.4 1760.71 -0.19

Manila 7580.71 7646.2 -0.86

Jakarta 5832.904 5751.119 1.42

Kuala Lumpur 1816.36 1845.03 -1.55

Ho Chi Minh 969.25 985.91 -1.69

Change on year

Market Current End 2017 Pct Move

Singapore 3506.51 3402.92 3.04

Bangkok 1757.4 1753.71 0.21

Manila 7580.71 8558.42 -11.42

Jakarta 5832.904 6355.654 -8.22

Kuala Lumpur 1816.36 1796.81 1.09

Ho Chi Minh 969.25 984.24 -1.52

(Reporting by Karthika Suresh Namboothiri; Additional reporting

by Binisha H. Ben; Editing by Amrutha Gayathri)