SE Asia Stocks-Philippine index slides over 2 pct; Fed decision awaited

* Most lower ahead of Fed policy decision

* Singapore hits 2-month low

* Vietnam up

By Nicole Pinto

June 13 (Reuters) - Most Southeast Asian stock markets fell

on Wednesday ahead of the U.S. Federal Reserve's policy

decision, with Philippines losing over 2 percent and Singapore

hitting a two-month low.

Later in the day, the Federal Reserve is expected to hike

its interest rates for the second time this year after a move in

March, but the bigger question for investors is the outlook for

future monetary tightening amid an ongoing economic expansion.

The European Central Bank at its policy meeting on Thursday

will debate on whether to end a 2.55 trillion euro bond purchase

scheme this year as inflation and growth pick up.

Philippines, the biggest loser in the region, closed

2.2 percent lower, with SM Investments Corp, JG Summit

Holdings Inc and Ayala Corp shedding more than

3 percent each.

The Philippine peso touched its lowest since June

2006 on concerns over the country's high inflation rates. Nestor

Espenilla, the country's central bank governor, said the bank

would consider not just recent inflation data but all potential

drivers of future inflation when it reviews monetary policy next

week.

A weaker peso has increased forex risk for investors holding

local securities, especially for those converting it back into

the dollar, said Fio De Jesus, an equity research analyst with

RCBC Securities in Manila.

"I think its more of the peso and the Fed that is moving the

market."

Singapore shares closed at their lowest level in two

months led by United Overseas Bank Ltd, DBS Group

Holdings Ltd and Oversea-Chinese Banking Corp Ltd

, all ending more than 1 percent lower.

Thai shares fell after two sessions of gains while

Vietnam, the sole gainer in the region, ended higher for

a ninth session in ten.

Indonesian financial markets are closed until June 19 for

Eid Al-Fitr.

For Asian Companies click;

SOUTHEAST ASIAN STOCK MARKETS

Change on the day

Current Previous Close Pct Move

Singapore 3392.51 3430.69 -1.11

Bangkok 1718.34 1727.29 -0.52

Manila 7602.98 7771.3 -2.17

Kuala Lumpur 1763.57 1764.16 -0.03

Ho Chi Minh 1030.53 1020.76 0.96

Change on year

Market Current End 2017 Pct Move

Singapore 3392.51 3402.92 -0.31

Bangkok 1718.34 1753.71 -2.02

Manila 7602.98 8558.42 -11.16

Kuala Lumpur 1763.57 1796.81 -1.85

Ho Chi Minh 1030.53 984.24 4.70

(Reporting by Nicole Pinto in Bengaluru; Editing by Vyas Mohan)